Multi-Asset Class
Categories: Mutual Funds, Managed Funds
You’ve already got some money investment, but don’t know what else to invest in? More equity? Maybe bonds, or even straight-up cash? The good news is that you don’t have to decide...in the same way that you don’t have to pick specific stocks if you invest in mutual funds and ETFs.
A multi-asset class, or multi-asset fund, combines multiple types of assets, each known as an “asset class.” Different multi-asset classes have different types of assets in them, and different amounts of those asset classes—there are lots of options to cater to different types of investors. The one thing that’s the same about these funds is that they contain multiple types of assets: maybe cash and bonds, or equity and real estate, etc.
A multi-asset class offers great diversification, but at the cost of potential returns. So it goes in the world of investing.