A mixed fund is a type of mutual fund that includes various types of assets, allowing investors to diversify their holdings without establishing multiple funds. There are no restrictions on the types of assets that can be included, and the risk value of each asset varies. Mixed funds are difficult to classify as more or less risky than other mutual funds.
The mixed fund is a form of mutual fund that is made up of several different types of assets, rather than one or two types of assets. The basic idea behind a blended fund is to allow an investor to vary the diversity of their holdings without the need to establish several different funds.
Often referred to as hybrid funds, there are no real restrictions on the types of assets that can be included in a single blended fund. It is possible to have an eclectic mix of stocks, bonds, and money market securities as part of a mixed fund. There is also no proscribed percentage of the mixed fund that must be comprised of one asset class. Therefore, a mixed fund may be full of stocks and contain only a few bonds and other securities, or it may be allocated more or less evenly across asset classes.
Just as there is no ideal balance between the types of assets that can be part of a mixed fund, there is also no recommended balance between the risk value of one asset in the fund and the rest of the assets. In fact, many examples of the blended fund will contain a diverse mix of assets that carry a wide range of risks, from the very safe to the extremely risky. The exact composition of the mixed fund is up to the individual investor and how much risk they want to consider as part of the overall investment scheme.
Due to the diverse nature of the mixed fund, it is very difficult to classify the fund as more or less risky than other forms of the mutual fund. However, there is a school of thought that tends to position the mixed fund as less risky than stock mutual funds, while still riskier than more simplistic bond funds.
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