What is a Mixed Fund and How Does It Work?
Mixed funds are exactly what they sound like: they invest in a strategic mix of stocks and interest bearing securities (bonds). This combination provides a risk level and return potential that sits directly between high-risk equity funds and low-risk bond funds.
Investing in funds involves risk.
Who Are Mixed Funds Suitable For?
Mixed funds are the perfect choice for investors who want a ready-made, balanced portfolio without having to manually buy and rebalance different securities themselves. They suit you if you want to spread your risk safely across asset classes while still maintaining a higher return potential than pure bond funds.
There are different types of mixed funds:
- Funds with strict, fixed percentage allocations of stocks vs bonds.
- Funds with active investment strategies where the manager constantly adjusts the allocation based on the current macroeconomic situation.
Types of Mixed Funds
Strategy Funds
At Quartal, we have several proprietary mixed funds, where the Strategy funds are among our most popular. Our Strategy funds come in several variants with clearly defined risk levels and expected returns, allowing you to pick the exact risk profile you are comfortable with.
Generation Funds
Generation funds are a specific type of mixed fund designed purely for pension savings. They automatically shift their allocation over time. They start with a high proportion of stocks for maximum growth when you are young, and gradually shift to safe interest-bearing securities as your retirement year approaches. The fund name usually indicates the intended generation (e.g., Quartal Generation Fund 70s is designed for people born in the 1970s who will retire around 2040).
Sustainable Mixed Funds
All funds managed by Quartal are covered by our strict responsible investment framework. However, we also offer specific mixed funds with an extra heavy focus on sustainability and environmental impact, balancing ethical investing with steady returns.
Keep in mind that historical returns are no guarantee of future performance. The value of your fund units can both increase and decrease, and you may not get back the entire amount invested.
