Fund Focus: the benefits of balanced funds

Balanced funds offer a straightforward way to – as the name suggests – strike a risk-reward balance with a single, efficient product.

[Read more about the benefits of investing in balanced funds].

Why investors choose balanced funds

Balanced funds are hybrid products that provide not only variety within an asset class, but also exposure to different asset classes and geographies. A single unit trust, for instance, can package bonds and shares, property and cash, and local and global assets.

Importantly, balanced funds also give you a spectrum of risk levels. One asset in the fund could, for example, favour wealth preservation while another has prospects of high growth.

These funds are popular for three primary reasons:

1. Simplicity. Our fund managers do all the work behind the scenes to build and maintain the product with a strategic selection of underlying assets.
2. Diversification. As suggested above, balanced funds inject diversity into your investment portfolio. You don’t need to find and evaluate a range of different assets yourself. Variety is built into a single mutual fund.
3. Cost-efficiency. A single fund-management team takes care of all regulated activities, which brings costs down to a minimum.

Our all-in-one

The 1nvest High Equity Balanced Fund achieves all of the above. In a single unit trust, you have local and global exposure, cash and property, shares and bonds. Within the bonds, you even get access to a variety of maturation periods. Equities (shares in companies) also encompass no fewer than 11 different industries.

The weighting towards shares is an important feature. In the case of this fund, the balance leans towards a more aggressive strategy. This is good news for investors as we are entering a lower interest rate environment. Cheaper rates tend to enable higher company performance, which benefits share prices and dividends. Lower rates also make alternatives like bonds and commodities less attractive.

Speak to a registered financial advisor to find out how  the 1nvest High Equity Balanced Fund can add value to your individual wealth plan.

Our fund fact sheet provides all the details of the 1nvest High Equity Balanced Fund: who should invest in this fund, the ideal investment period and the fund’s risk level, as well as all the assets in the fund.