A Review of Domestic-Hybrid Mutual Funds
Journal of Indexes, Vol. 6, No. 4, pp. 30-32, October/November 2004
3 Pages Posted: 25 Jun 2009 Last revised: 25 Mar 2015
Date Written: June 24, 2009
There are several types of domestic-hybrid mutual funds that apply various stock/bond allocations in efforts to provide full diversification in one portfolio. These “one-stop shopping” funds were initially designed to simplify decision making for long-term investors and pension plan participants. This design was considered appropriate if the benefits of risk-moderating bond allocations were to be fully realized.
Later,the more established and successful of these funds were deemed appropriate as core elements of portfolios. Domestic-hybrid mutual funds come in two basic forms:balanced funds and asset allocation funds. Each form focuses on a different approach to stock/bond allocation, and their histories precede their overall label as domestic-hybrid funds.
Keywords: domestic-hybrid mutual funds, balanced funds, funds of funds, asset allocation funds, life-stage funds, target maturity funds, strategic-income bond funds, couch potato portfolio, all-weather funds
JEL Classification: G2, G23, G28
Suggested Citation: Suggested Citation