The funds in investment securities are assets primarily consist of titles, then we speak of stocks, bonds and government bonds, which are managed by the management company in order to produce an income statement. These assets are divided into parts with the same characteristics and the same rights, each party is defined share of the specific provision. Each share can then be purchased or sold by the individual saver on a stock market linked to a stock investment. There are different types of investment funds, in this guide we will focus on the balanced and try to figure out how to invest in this specific category of funds.

First we need to agree on what we mean by fund balance. The classification of this kind of investment depends, primarily, by the composition percentage to characterize the type of securities that make up the assets related to the fund. In practice you have to quantify what is the maximum percentage of shares permitted, as the total value, compared to total assets. Let me give you an example: if a fund has 100 shares of Alfa (which today are worth on the stock exchange 1 euro each) and 50 obligations of the company Beta (which now apply in bag 0.5 euro each), the assets of this fund would be 125 euro, of which 100 euro invested in equities and 25 euro in bonds. So, in terms of percentages, revenues that the equity investment weighs 100 to 125, ie 80% and the bond for the remaining 20%.


Well for fund balance is defined as a heritage not particularly biased toward equity investments and even to the bond. Quantitatively the actions included in this type of funds should be in a range wider than 20% to 50%. In practice, therefore, the minimum percentage of share is 30%, and the maximum is 70%. To understand how to invest in balanced funds, you must realize what is the profile of risk you’re willing to take. Starting from the premise that you have chosen a type of bottom is not too risky, you have to think if you are willing to risk in this context the maximum or minimum.

In the first case you will have to orient yourself to funds that invest in equities so far more than half of their money (while remaining below the maximum threshold of 70%) and that, perhaps, prefer securities denominated in currencies other than the euro, shouldering consequently a risk-opportunity tied to the exchange rate against the euro maid uniform. If, however, the cautious, choose those funds balanced who undertake to settle at percentages associated with equity investment well under half of the total available funds. Furthermore, in the latter case, you will probably prefer funds that focus on euro securities, to avoid incurring losses in the field even currency.