Balanced funds
Rate of return depends on the portfolio
-
The fund manager of a balanced fund may change the ratio of shares and bonds in the portfolio according to the events in stock markets.
For example, if the fund manager expects share prices to drop, he or she can increase the share of bonds in the fund portfolio.
-
When investing into a balanced fund, you must keep in mind that prices will fluctuate more than in a bond fund.
-
Balanced funds have a more stable rate of return at the time when prices at stock markets are decreasing. However,
when prices at stock markets increase, the rate of return of balanced funds will be smaller due to bond investments.
Swedbank Fund of Funds 30 invests 30% of its portfolio into equities and 70% into bonds; Swedbank Fund of Funds 60 places 60%
into equities and 40% into bonds and Swedbank Fund of Funds 100 invests all assets of the fund into equities.