Moderate allocation equity funds are those, according to Morningstar, that have an allocation of between 35% and 65% in equities. This overlaps with the Association for Savings and Investment SA (Asisa) multi-asset medium equity, but the Asisa category is quite small, with R48bn under management, while the Morningstar range of funds is wider. Multi-asset investment tends to be polarised between low-equity funds as investors get closer to retirement, and high-equity funds throughout the time they are building up retirement capital. But some allotment to a moderate allocation fund makes sense. Take the Coronation Capital Plus fund, which has a larger risk budget than its Balanced Defensive fund but, unlike the Balanced Plus fund, focuses on absolute returns.For many people, Capital Plus will be a more appropriate choice when they purchase a living annuity than Balanced Defensive. Capital Plus was initially run by Louis Stassen, whose ideas on understanding the risk profile of each ass...

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