U.S. Growth/Balanced Allocation

U.S. Growth/Balanced Allocation funds are mutual funds or ETFs that own a... U.S. Growth/Balanced Allocation funds are mutual funds or ETFs that own a diversified portfolio of U.S. assets. 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. An advantage to solely focusing on U.S. assets is that one of these funds takes on no currency risk. It may, also, in certain years enjoy higher returns than a comparable fund with international exposure. However, by not owning international assets, a fund may also miss out on the opportunity to generate higher returns from other countries of the world. Last Updated: 01/22/2025 View more View less

U.S. Growth/Balanced Allocation funds are mutual funds or ETFs that own a diversified portfolio of U.S. assets. These funds typically own a mix of equities, fixed-income, and cash, and can also own, depending... U.S. Growth/Balanced Allocation funds are mutual funds or ETFs that own a diversified portfolio of U.S. assets. 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. An advantage to solely focusing on U.S. assets is that one of these funds takes on no currency risk. It may, also, in certain years enjoy higher returns than a comparable fund with international exposure. However, by not owning international assets, a fund may also miss out on the opportunity to generate higher returns from other countries of the world. Last Updated: 01/22/2025 View more View less