An Asset Allocation Fund Guide
As far as funds go, Asset Allocation Funds can be summed up in one word. Versatility. Most balanced funds are going to keep a pretty fixed combination of stocks and bond, for example 60 percent stocks and 40 percent bonds. However an asset allocation fund can move money between both to capitalize on whatever current market conditions exist. Some funds will take money from stocks and invest in bonds, or vice versa, if they believe a better return can be had there. It provides a flexibility that other funds may not be able to provide due to rigid interior rules.
