Blend Fund

Blend Fund

A Blend Fund is a type of investment fund that combines multiple Asset-classes/">Asset Classes, such as equities, Fixed Income, and alternative investments, into a single portfolio. The goal of a Blend Fund is to provide investors with diversified exposure while optimizing risk and return characteristics.

Examples:

• Balanced Funds: These typically allocate a specific percentage to Stocks and Bonds, aiming for a balanced risk-return profile.
• Target Date Funds: Designed for retirement savings, these funds gradually adjust their Asset allocation based on a target retirement date.

Cases:

• Case 1: An investor seeking moderate growth may choose a Blend Fund that allocates 60% to equities and 40% to Fixed Income.
• Case 2: A retirement plan might offer a Blend Fund that adjusts its composition over time to reduce risk as the target retirement date approaches.