Balanced Unit Trusts

From Financial Literacy Wiki

Balanced Unit Trusts are unit trusts that invest in stocks, bonds and short term instruments depending on what is stated in the prospectus. The allocation would be determined by the fund managers depending on the investment climate in both stocks and bonds and the region they are investing in.

Depending on the weightage on the different instruments, it would have a volatility that is a weighted average of a equity unit trusts and bond unit trust. This unit trust would provide people who wants some exposure on the two types of unit trusts and leaves the problem of allocation to experts. It should be a medium-term tool of investment and should not be a place to park funds where you know you are going to need it soon.