Balanced funds review: Neither too risky nor too safe
Perpetua Balanced Fund, Coronation Capital Plus, Foord Conservative Fund, Investec Opportunity Fund, Absa Balanced Fund
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 e...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.