Balanced funds: does the 60:40 split still work?
Balanced funds didn’t have a good year in 2022. In fact, they’ve been laggards for a while now. So what’s the point of the classic bonds ’n stocks portfolio?
26 January 2023 - 05:00
Balanced funds on average had dismal performances in 2022. And not only last year: it’s been going on for some time now.
Last year — using calculations from Fundsdata — the average of South African balanced (high equity multi-asset) funds returned all of -0.1%. The top-performing fund, the PSG Multi-Management Growth Fund of Funds delivered a return of 11.27% — not even four percentage points above inflation...
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