imageBalanced Funds

Funds that invest in different asset classes (for example in both bonds and equities) combine the growth prospects of equities with the returns of fixed-interest securities. These funds, known as balanced funds, give the fund manager more freedom to invest. If stock prices are stagnating or falling, he/she can switch to fixed-interest securities and if the stock market is growing he/she can return the focus to investing in equities.

 

 

Benefits of balanced funds:

  • Broad diversification of investments
  • Active management of risks and different asset classes
  • Suitable for target-oriented saving
  • Maintenance-free for the investor
  • Investment funds are special assets

 

Risks to be considered:

  • The prices of the assets in the fund (especially equities and alternative investments) and thus the net asset value of the fund can fluctuate considerably; this depends on the risk category of the fund in question
  • Increasing interest rates can lead to a decrease in the fund price
  • Prices of corporate bonds depend on the development of the issuing company
  • Due to investments in foreign currencies, the net asset value of the fund can be negatively affected by currency fluctuations
  • Capital loss is possible

 

You can find our balanced funds here.

 

Examples:

ERSTE Balanced RON (former BCR Dinamic)