A Review of Domestic-Hybrid Mutual Funds

13 Pages Posted: 21 Jun 2012 Last revised: 3 Mar 2017

See all articles by John A. Haslem

John A. Haslem

University of Maryland - Robert H. Smith School of Business; University of Maryland - Robert H. Smith School of Business

Multiple version iconThere are 2 versions of this paper

Date Written: August 23, 2004

Abstract

Domestic-hybrid mutual funds vary with respect to investment objective, active or index management, proportions of stocks and bonds, and the mix of stock cap size/investment style and, therefore, risk.

There are several types of domestic-hybrid mutual funds that apply various stock/bond allocations in efforts to provide full diversification in one portfolio. These “one-stop shopping” funds were initially designed to simplify decision making for long-term investors and pension plan participants. This design was considered appropriate if the benefits of risk-moderating bond allocations were to be fully realized.

Later, the more established and successful of these funds were deemed appropriate as core elements of portfolios. Domestic-hybrid mutual funds come in two basic forms: balanced funds and asset allocation funds. Each form focuses on a different approach to stock/bond allocation, and their histories precede their overall label as domestic-hybrid funds.

Keywords: domestic hybrid mutual funds, balanced funds, asset allocation funds, funds of funds, life-stage funds, target maturity funds, all-weather portfolios

JEL Classification: G2, G23, G28

Suggested Citation

Haslem, John A. and Haslem, John A., A Review of Domestic-Hybrid Mutual Funds (August 23, 2004). Available at SSRN: https://ssrn.com/abstract=2088141 or http://dx.doi.org/10.2139/ssrn.2088141

John A. Haslem (Contact Author)

University of Maryland - Robert H. Smith School of Business ( email )

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Washington, DC DC 20016
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202-236 3172 (Phone)

University of Maryland - Robert H. Smith School of Business ( email )

College Park, MD 20742
United States
202-387 2025 (Phone)

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