Balanced funds are not created equally. The reason for this is simple; no two people really want the same thing. This makes sense. Some investors want active management in terms of picking the right assets because they do not have the time or know-how to pick those stocks for themselves. Other investors know that security picking is not always a winning strategy and as a result want their mutual fund manager to adopt a more of a buy-and-hold strategy and to manage their portfolio in a way that they are never over-exposed to any given asset class at any time.
Strategic Balanced Funds
As the name implies, strategic balanced funds take a strategic approach to managing their assets. In plain English this simply means that investment managers will determine their strategy up front and will stick to it throughout the investment process. Continue reading ‘Difference Between Tactical and Strategic Asset Allocation’ »