Lifestyle Fund

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Definition: Lifestyle Fund

Lifestyle fund is a kind of an investment fund which consists of combination of assets as per the risk and return required by investors. Lifestyle Fund can be categorized as low risk, medium risk and high risk fund. In low risk lifestyle fund risk is low but at the same time return is also low. High risk lifestyle fund consists of aggressive growth assets which can give potential returns in the short term. But this fund increases the risk substantially also.

Lifestyle Fund tries to match with the lifestyle of the investors. The product mix in the lifestyle funds considers current income level of investors, risk tolerance of an individual, age, or any other major stage of life.

For example, High risk lifestyle funds include aggressive growth assets and this fund is for the investors who are in their 20s because their risk appetite is high. Whereas for the investors who are going to retire or in their 50s, low risk lifestyle fund is chosen which include low risk and stable assets. This low risk lifestyle fund is called conservative growth fund.

One of the examples of lifestyle fund is UTI India Lifestyle Fund.


Hence, this concludes the definition of Lifestyle Fund along with its overview.

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