Mixed funds
A mixed fund is an investment fund that can invest in several asset classes such as stocks , bonds , money market stocks , commodities, precious metals and real estate at the same time. It combines growth opportunities from riskier assets like stocks with income from lower risk assets like bonds. This gives the fund manager greater investment flexibility. The mix ratio of the various asset classes is determined by the alignment of the mixed fund within certain limits. Conservative funds have a higher bond or money market share; this means they have lower risks, but also lower chances of winning. Progressive funds invest a larger part in stocks or precious metals such as gold. However, the increased chances of winning are also offset by an increased risk of loss. Balanced mixed funds divide the deposits equally. The fund companies are allowed to vary the distribution of the funds invested to a certain extent depending on the market situation. In the event of stagnating or falling share prices, the fund manager can e.g. B. switch to interest-bearing securities; if there is a positive trend on the stock market, he can shift the focus back to investing in stocks.
The so-called target funds are a special form of mixed funds . In contrast to traditional mixed funds, target funds have a fixed term and align their investment with the result at the end of the term. At the beginning of the term, these funds invest their capital primarily in high-risk securities such as stocks. The closer the fund matures, the more these funds are shifting into low-risk forms of investment such as bonds and money market bonds in order to secure the capital they have generated. In order to cover the different investment horizons of the customers, the issuers usually offer a whole range of such funds with different maturities.