Dictionary of Finance and Investment Terms: flexible mutual fund
flexible mutual fund
fund that can invest in stocks, bonds, and cash in whatever proportion the fund manager thinks will maximize returns to shareholders at the lowest level of risk. Flexible funds, also called asset allocation funds, can provide high returns if they are fully invested in stocks when stock prices soar, and they can also protect shareholders' assets by going largely to cash during a stock bear market. Flexible mutual funds are popular because the fund manager, not the shareholder, must make the difficult decisions on asset allocation and market timing. Some flexible funds allow managers to buy securities anywhere in the world in their quest to maximize shareholder returns.
