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What is a flexible fund?
A flexible fund is a mutual fund or other mutual investment that has a wide range of flexibility for making investment decisions and allocations.
Flexible funds explained
Flexible funds can be regulated by the US or offshore funds. These funds provide the portfolio manager with ample leeway to invest in the portfolio. As a result, they are very sensitive to style drift and can use macro strategies such as sector rotation or macro coverage. Investors in these funds will often invest on the expertise of high-profile managers, rather than market-specific allocations.
A flexible fund usually does not have fundamental investment criteria or requirements that must be met by the portfolio manager. This gives the portfolio manager the opportunity to choose from a wide range of investments. Managers can also allocate investments more actively to market opportunities and conditions rather than specific investment requirements.
Flexible funds will usually target a specific securities universe, however, they may also have the flexibility to invest in all types of assets. As with other market strategies, the fund will need to provide details of its investment intentions in a prospectus. Thus, the prospectus will provide only details about the broad universe in which the fund intends to invest, noting that its strategy has a wide flexibility for investments. One of the key benefits of a flexible fund strategy is that its investments and allocations can change over time.
Mutual funds are usually attached to a certain style box, such as a large capital increase or a low ceiling value, which helps them reach a specific audience of investors. Flexible funds do not follow this standard approach, which makes due diligence even more important for investors.
Fidelity Magellar Fund
The Magellan Fidelity Fund is one of the most well-known flexible funds, thanks in part to Peter Lynch, who supported a flexible investment strategy while managing the fund in the 1980s and early 1990s. in its investment strategy together with subsequent portfolio managers.
Peter Lynch has advocated for broad market investments in a highly diversified portfolio of stocks. His portfolio held over 1,400 companies. The Fidelity Magellan Fund still offers a very open management style, offering the manager no style restrictions for the choice of investments, other than the universe of equity.
BlackRock flexible funds
BlackRock offers a wide variety of flexible funds to its investors, many of its flexible funds investing in international equities. These funds give the portfolio manager the flexibility to invest in all types of investments in a given region, without a defined allocation or style focus. These funds include the China Flexible Equity Fund, the Continental Europe Flexible Fund, the Flexible Multi-Asset Fund, the Japan Flexible Equity Fund and the US Flexible Equity Fund.
A flexible fund is a mutual fund or other mutual investment that has a wide range of flexibility for making investment decisions and allocations.
Flexible funds explained
Flexible funds can be regulated by the US or offshore funds. These funds provide the portfolio manager with ample leeway to invest in the portfolio. As a result, they are very sensitive to style drift and can use macro strategies such as sector rotation or macro coverage. Investors in these funds will often invest on the expertise of high-profile managers, rather than market-specific allocations.
A flexible fund usually does not have fundamental investment criteria or requirements that must be met by the portfolio manager. This gives the portfolio manager the opportunity to choose from a wide range of investments. Managers can also allocate investments more actively to market opportunities and conditions rather than specific investment requirements.
Flexible funds will usually target a specific securities universe, however, they may also have the flexibility to invest in all types of assets. As with other market strategies, the fund will need to provide details of its investment intentions in a prospectus. Thus, the prospectus will provide only details about the broad universe in which the fund intends to invest, noting that its strategy has a wide flexibility for investments. One of the key benefits of a flexible fund strategy is that its investments and allocations can change over time.
Mutual funds are usually attached to a certain style box, such as a large capital increase or a low ceiling value, which helps them reach a specific audience of investors. Flexible funds do not follow this standard approach, which makes due diligence even more important for investors.
Fidelity Magellar Fund
The Magellan Fidelity Fund is one of the most well-known flexible funds, thanks in part to Peter Lynch, who supported a flexible investment strategy while managing the fund in the 1980s and early 1990s. in its investment strategy together with subsequent portfolio managers.
Peter Lynch has advocated for broad market investments in a highly diversified portfolio of stocks. His portfolio held over 1,400 companies. The Fidelity Magellan Fund still offers a very open management style, offering the manager no style restrictions for the choice of investments, other than the universe of equity.
BlackRock flexible funds
BlackRock offers a wide variety of flexible funds to its investors, many of its flexible funds investing in international equities. These funds give the portfolio manager the flexibility to invest in all types of investments in a given region, without a defined allocation or style focus. These funds include the China Flexible Equity Fund, the Continental Europe Flexible Fund, the Flexible Multi-Asset Fund, the Japan Flexible Equity Fund and the US Flexible Equity Fund.
