Flexible Fund

What Is a Flexible Fund?

A flexible fund is a mutual fund or other pooled investment that has broad flexibility for going with investment choices and allocations. Flexible funds can be U.S. regulated or offshore funds.

These funds give the portfolio manager broad scope for making portfolio investments. Accordingly, they are exceptionally powerless to style drift and may utilize macro strategies like sector rotation or macro hedging.

Investors in these funds will frequently invest in light of the ability of high-profile managers as opposed to specific market segment allocations.

Figuring out Flexible Funds

A flexible fund typically doesn't have fundamental investing criteria or requirements that the portfolio manager must follow. This offers the portfolio manager the chance to browse a broad universe of investments. Managers can likewise more actively allot investments as indicated by market opportunities and conditions instead of specific investing requirements.

Flexible funds generally target some universe of protections; notwithstanding, they may likewise have the flexibility to invest across a wide range of assets. Like other market strategies, the fund will be required to unveil subtleties on its investment expectations in a prospectus.

The prospectus will just give subtleties on the broad universe where the fund plans to invest, noticing that its strategy has broad flexibility for investments. One of the key benefits of a flexible fund strategy is that its investments and allocations can change after some time.

Mutual funds typically are pegged to a particular [style box](/stylebox, for example, huge cap growth or small-cap value, which assists them with contacting a specific crowd of investors. Flexible funds don't follow this standard approach, making due diligence even more important for investors.

Fidelity Magellan Fund

The Fidelity Magellan Fund is perhaps of the most notable flexible fund, thanks in part to Peter Lynch, who pushed a flexible investment strategy while dealing with the fund during the 1980s and mid 1990s. The Fund has kept on carrying forward a flexible investing style in its investment strategy with its subsequent portfolio managers.

Peter Lynch upheld for broad market investment in an exceptionally diversified portfolio of equity stocks. His portfolio held north of 1,400 companies. The Fidelity Magellan Fund actually offers an exceptionally open management style, giving the manager no specific style limitations for picking investments other than the equity universe.

BlackRock Flexible Funds

BlackRock offers a wide assortment of flexible funds for its investors, with a considerable lot of its flexible funds investing in international equities. These funds give the portfolio manager flexibility to invest across a wide range of investments from a particular region with no defined allocation or style accentuation.

Instances of these funds incorporate the China Flexible Equity Fund, Continental Europe Flexible Fund, Flexible Multi-Asset Fund, Japan Flexible Equity Fund, and the U.S. Flexible Equity Fund.

Features

Investors in these funds will frequently invest in view of the skill of high-profile managers as opposed to specific market segment allocations.
Flexible funds generally target some universe of protections; notwithstanding, they may likewise have the flexibility to invest across a wide range of assets.
A flexible fund is a mutual fund or other pooled investment that has broad flexibility for settling on investment choices and allocations.