What is a flexible allocation fund?
Flexible asset allocation funds invest in stocks, bonds, money market instruments, commodities, etc. In order to obtain high investment. It has the characteristics of diversified investment portfolio, enhanced expected income and high flexibility.
Compared with other funds, its main feature is that funds can significantly change the asset allocation ratio according to market conditions, and the proportion of investment in any kind of securities or assets can be as high as 100%.
Is it risky to allocate funds flexibly?
Flexible allocation funds have different risks according to different allocation methods, that is, their flexibility is not only reflected in investment forms, but also in expected returns and risks.
As an investment fund, it has unique risks. Different allocation methods have different risks, but the sources of these risks are roughly the same.
1, market risk
No one can guarantee the trend of market price. Changes in the market have a great impact on investment targets. Investment targets and investment industries may go down. In addition, the overall market downturn may lead to losses.
2. Investment risk
On the one hand, the investment risk comes from the management risk of the fund, and the investment operation of the fund manager is very important, and there is the possibility of loss; On the other hand, the risk brought by the price fluctuation of investment targets is as high as 100% because flexible allocation funds can invest in any kind of targets, which shows that some flexible allocation funds have higher risks.
3. Policy risks
The adjustment of government policies will have an impact, especially if the investment targets are investment tools with high policies, such as science and technology innovation board stocks or funds.
The above is about what is flexible allocation of funds and the risks of flexible allocation of funds. I hope it helps you. Warm reminder, financial management is risky and investment needs to be cautious.