Posted in Finance, Accounting and Economics Terms, Total Reads: 106
Definition: Flexible Fund
A Flexible Fund is a mutual fund in which the investments in one asset class can change to another asset class at the will of the fund manager. The main motive of the fund manager is to make money for his/her investors, hence the fund manager makes the changes in asset allocation (without the consent of the investor) in order to create profits for the investors.
In a flexible fund the investor does not know in which asset is the money invested unlike a mutual fund. Most of the Flexible Funds are run by fund managers who have made a name for them in the industry as the investors rely on their skills and experience.
When customers look at a Mutual Fund they usually look at the asset allocation of the fund, the sector in which the money would be invested, in short an investor is aware where the money will be invested which gives a clear picture of the risk taken by the fund manager and the investor. A Mutual Fund also has a minimum fixed return for a specified period of time that the fund manager ensures to an investor.