What is an asset allocation fund?

"Asset allocation fund," also known as a mixed fund or balanced fund, is a type of investment fund that invests in various types of assets, such as stocks, bonds, and other securities. The purpose of this fund is to spread risk and offer a balanced mix of investments that suit the investment objectives and risk profile of the investor.

Mixed funds are designed to benefit from the advantages of diversification, whereby capital is distributed across different asset classes to reduce the impact of negative performance in one sector or market. This makes them attractive to investors who want a balanced portfolio without the need to carry out active management themselves.