• Create BookmarkCreate Bookmark
  • Create Note or TagCreate Note or Tag
  • PrintPrint
Share this Page URL
Help

Hybrid Funds

Hybrid Funds typically invest in a mix of equities, fixed-income securities, and derivative instruments. Derivatives include futures and options that money managers may use to enhance growth or reduce risk. These funds include:

  • Asset allocation funds. These funds invest in various asset classes, including equities, fixed-income securities, and money market instruments. They seek a high total return by maintaining precise weightings in asset classes. These funds have become very important as the story on asset allocation is told. We will revisit this subject in Chapter 12 as we consider how to deploy our strategy for matching assets to goals.

  • Global asset allocation funds. These funds invest in a mix of equity and debt securities issued worldwide, including in the United States.

  • Balanced funds. These funds invest in a mix of equity securities and bonds with the three-part objective of conserving principal, providing income, and achieving long-term growth of both principal and income.

  • Flexible portfolio funds. These funds invest in common stocks, bonds, other debt securities, and money market securities to provide high total return. These funds may invest up to 100 percent in any one type of security and may easily change weightings depending upon market conditions.

  • Income-mixed funds. These funds invest in a variety of income-producing securities, including equities and fixed-income instruments. They seek a high level of current income without regard for capital appreciation.


PREVIEW

                                                                          

Not a subscriber?

Start A Free Trial


  
  • Creative Edge
  • Create BookmarkCreate Bookmark
  • Create Note or TagCreate Note or Tag
  • PrintPrint