During this period, the Balanced Fund would be the best choice for investor to reduce the risk while maitain moderate rate of return on their investment. Balanced funds aim to provide income and capital growth over the medium to long term period by adopting a balanced asset allocation approach - 40% to 60% of the fund's Net Asset Value (NAV) is invested in equities while the balance is invested in debt securities and liquid assets. This type of fund will adjust their exposure to equity from time to time depends on the market trend. In conclusion, balanced funds are suitable for medium to long term investors with conservative to moderate risk reward temperament with a preference for receiving income and a respectable measure of capital growth.
Monday, September 17, 2007
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