Asset Allocation Fund

Business, Legal & Accounting Glossary

Definition: Asset Allocation Fund



Full Definition of Asset Allocation Fund


An asset allocation fund is a single mutual fund that spreads its portfolio across a variety of investments to further diversify and minimize risk for the investor. In an asset allocation fund, the fund manager creates a highly diversified portfolio based on the performance of the holdings in each category. An asset allocation fund is classified as “low maintenance” since it allows busy investors to invest without having to keep up with the specific securities in the asset allocation fund. An asset allocation fund chooses from an array of investments such as domestic and foreign stocks and bonds, REITs, government securities and other vehicles. An asset allocation fund’s appeal is that it offers a wider range of investments that are usually only achieved by investing in many different funds, which can be time consuming. While one asset allocation fund may change its mix to adjust to market conditions, a different asset allocation fund might hold relatively fixed rates.


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Definition Sources


Definitions for Asset Allocation Fund are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 4th February, 2020 | 0 Views.