Investment funds are a special type of mutual funds that invest in stocks and bonds. The pros and cons of these funds will be discussed.
A balanced fund invests about 45 percent to 55 percent in equities and other fixed income securities. You have an equal share of debt and equity. In case of a collapse of the stock market, provides for the liability component is made much higher, and The damages sustained by the component of equity. In the case of a stock market and rising bond prices fall, the equity component of compensation for the same.
The advantages of this type of investment is that there are moderate returns, but that the security of capital guarantees a high degree.
The advantages of this fund is that it minimizes the risk of investing in the capital market.
The disadvantage is that more snacks> The stock market is not able to achieve maximum performance, the allocation of capital because of its low altitude.
This fund is good for people with low risk.
This fund is suitable for people in older age groups. E 'for people who save money to meet a short-long-term goal for the good. Not for people who receive a significant equity exposure is recommended. For them, pure equity funds may be proposed schemes. Careful investors exposure to a broadAmount of capital and wants to protect their capital, by contrast, may opt for this type of plan.
Thus, a mixed fund is a fund, a good moderate risk, capital protection, with a percentage share of equity capital also.
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