Allocating invested cash to a mix of asset classes and specific securities held in a portfolio to meet the goals of that portfolio's investors.
There are two primary types of asset management: active and passive; active management involves regularly reviewing and re-allocating funds in an attempt to "beat the market," while passive management simply requires buying assets, holding them for the investment period, and selling them when cash is needed.
When Taylor Swift collects her millions from dropping a new album and doing a tour, her financial advisor father then has to decide how much of that money to invest in stocks, bonds, real estate, and other assets and how often to buy/sell those assets. For this act of asset management, he is paid a percentage of assets under management, and TayTay doesn't disown him.
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Finance: What are Balanced Funds?37 Views
Finance a la shmoop what are balanced funds? well this is a teeter
and this is a totter and this thing here is the fulcrum and here's you madam [Woman sitting on the fulcrum]
imbalanced funds sitting in the middle a gentle breeze sways you left toward a
little more yield or interest on bond investments and then another breeze
sways you right toward a little more growth or capital appreciation from [woman swaying right]
equities a balanced fund is a type of mutual or index fund which generally
keeps an even ish mix of growth and income for investors who don't want the
volatile sharp rocky mountain peaks and valleys that growth only throws at you [Growth chart with peaks and valleys]
but well they want a bit more excitement than all bonds got it or rather they can
handle a bit more risk in their lives than what a simple bond income fund
would deliver to them you know a whole lot of boring yield balance is almost [Woman balancing]
always good for zen.. oops didn't see that breeze coming
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