Growth/Balanced Allocation

Growth/Balanced Allocation funds are mutual funds or ETFs that own a diversified... Growth/Balanced Allocation funds are mutual funds or ETFs that own a diversified portfolio of assets in domestic and/or international markets. These funds typically own a mix of equities, fixed-income, and cash, and can also own, depending on their mandate, commodities (such as gold), as well as derivatives. These funds tend to be actively managed, with professional managers using both quantitative and qualitative approaches to best determine the ideal basket of assets at any one time. These funds are geared towards investors who are at least reasonably risk-tolerant. Depending on the particular fund, it may have a higher weighting towards equities vs. bonds. A fund that owns 80% of equities will have more of a Growth characteristic, while a 60-40 fund will have more of a Balanced flavour. These funds can help retirees meet their goals. These funds tend to be managed with the assumption that a diversified portfolio more weighted towards equities will produce the best risk-adjusted returns over the long term. It’s important to note, however, that in the short term, these funds can experience significant volatility (especially Growth-focused ones) due to their majority allocation to equities. As such, these funds are not appropriate for very conservative investors. Last Updated: 12/23/2024 View more View less

Growth/Balanced Allocation funds are mutual funds or ETFs that own a diversified portfolio of assets in domestic and/or international markets. These funds typically own a mix of equities, fixed-income, and cash, and can... Growth/Balanced Allocation funds are mutual funds or ETFs that own a diversified portfolio of assets in domestic and/or international markets. These funds typically own a mix of equities, fixed-income, and cash, and can also own, depending on their mandate, commodities (such as gold), as well as derivatives. These funds tend to be actively managed, with professional managers using both quantitative and qualitative approaches to best determine the ideal basket of assets at any one time. These funds are geared towards investors who are at least reasonably risk-tolerant. Depending on the particular fund, it may have a higher weighting towards equities vs. bonds. A fund that owns 80% of equities will have more of a Growth characteristic, while a 60-40 fund will have more of a Balanced flavour. These funds can help retirees meet their goals. These funds tend to be managed with the assumption that a diversified portfolio more weighted towards equities will produce the best risk-adjusted returns over the long term. It’s important to note, however, that in the short term, these funds can experience significant volatility (especially Growth-focused ones) due to their majority allocation to equities. As such, these funds are not appropriate for very conservative investors. Last Updated: 12/23/2024 View more View less