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Asset Allocation Funds Offering Financial Security
Our busy lives today make it tough to find the time for work, play, family activities and more. Finding time to invest for retirement or save for college or a major purchase can be almost impossible.
Fortunately, an increasingly popular investment option exists that provides a simple solution for financial security. Asset Allocation Funds.
The term "asset allocation" describes when an investor balances risk and return by creating a diversified portfolio of stocks, bonds and cash. In the past, investors needed to purchase several different mutual funds to balance their level of risk and create diversification. Today, asset allocation funds take this burden off investors by incorporating the basics of asset allocation, smart investing, diversification and reallocation, in a single fund focused on the individual investors’ goals and personal risk-taking philosophy.
The recent rise in popularity of asset allocation funds suggests their simplicity is just what investors have been looking for. The number of asset allocation funds has more than doubled since 2001. There now are more than 300 asset allocation funds, offered by over 60 different money managers.
Asset allocation funds are popular because they appeal to so many different types of finance investors. Whether a first-time investor or a seasoned financial wizard, these funds have a place in almost every portfolio.
Asset allocation fund strategies vary, though. The goal of some is to maintain a static asset mix, while others vary the mix to pursue market opportunities.
Asset allocation funds recently launched by Thrivent Investment Management are actively managed by a committee that monitors each fund’s risk versus return profile on a quarterly basis and makes adjustments to the underlying mix of securities based on changing market conditions.
As with any financial decision, investors should consult a qualified financial professional before committing to any fund. For more information, visit www.thrivent.com.
Courtesy of ARA Content
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