The paramount aim is to provide maximum returns to its participants to minimize their risks. This is achieved through diversification of the securities for the benefit of participants. Having an investment in a fund, the yield increases with the risk. Let’s see the features of mixed investment funds, which are the mixed fixed income fund and equity fund mixed. The Joint Fixed Income fund consists of funds from equity and fixed income investment with a variable that does not exceed 30%. The investment policy of this fund balance consists of investment in fixed income investments in the stock sometimes up to 30% of fund’s assets. The return of these funds is always linked to changes in the equity markets and fixed income. The profile of the client in this type of fund is for investors to cede some of the profitability by diversifying risk.
The Joint Equity Fund consists of funds from equity and fixed income investing over 30% and usually below 75%. The investment policy of the fund balance consists of investment in fixed income investment held in a range between 30 and 75% of fund’s assets. The return of these funds is tied equally to the development of equity markets and fixed income. The profile of the client in this type of fund is for investors who like the mixed fixed income fund, give a small part of the yield on risk diversification. After taking into account the two variables of its implementation, use and choice should be easier and more projection. This is why it is important to be well informed when trying to invest money in such funds.