Multi-asset funds comprise a diverse range of investments like bonds, cash, and real estate, differentiating them from single-class investments such as stocks. Types of multi-asset funds include hedge funds, target-date funds, target-risk funds, personal portfolios, income funds, and funds of funds, each catering to different investment strategies and risk profiles. These funds provide diversification, target specific financial goals, and accommodate varying risk tolerances, making them suitable for investors at different stages of their financial journey.

1. Types of Multi-Asset Funds
Stuart Hansen

2. Introduction
A multi-asset fund, also known as a multiple-asset or multi-asset class, is an
assortment of investments with comparable characteristics governed by the same
rules and regulations. A multi-asset investor's portfolio could include a combination
of bonds, cash, and real estate, whereas a single-class investor might only have
stocks.

3. There are different kinds of multi-asset funds, one of them is hedge funds. Hedge
funds invest in both traditional and alternative asset classes, taking a multi-asset
class strategy to invest. Investors in hedge funds are given the option to choose from
various multi-asset class investments; the main benefit of these investments is that
they diversify an investor's portfolio.

4. Another type of multi-asset fund investment is target-date funds. Target-date funds
are mutual funds that are designed to increase assets over a predetermined period.
These funds are structured to meet an investor's financial needs at a future period,
thus the phrase "target date." Most investors utilize a target-date fund to plan for
their retirement. Also, investors preparing for an item of future expenditure are
more likely to use target-date funds.

5. Target-risk funds are another kind of multi-asset fund. A target-risk fund is a type of
investment fund that holds a diversified mix of stocks, bonds, and other investments
to achieve a particular risk profile. A target-risk fund manager is in charge of
supervising all of the securities held by the fund to ensure that the degree of risk
does not exceed or fall below the fund's target-risk exposure.

6. Target-risk funds allow investors to modify their risk tolerance at any time during
their lives. When investors are younger, they often desire greater risk or volatility,
but they aim to limit their risk exposure as they become older and closer to
retirement.

7. Risk tolerance funds are another type of multi-asset fund. Many mutual fund
providers offer multi-asset class funds tailored to the client's risk tolerance. For
example, a larger equity allocation would be found in aggressive funds, while a
higher allocation to safer assets would be found in conservative funds.

8. A personal portfolio is another kind of multi-asset fund. One of the most fundamental
ideas in investing and finance is the portfolio. Depending on the context, it can have
a range of meanings. A portfolio is a collection of assets owned by one person or
institution, such as stocks and bonds, real estate, or even cryptocurrencies. If a
person has enough money, they could become their own asset manager and establish
a multi-class portfolio.

9. Another type of multi-asset fund is income funds. To provide regular income to
investors, income funds involve investment in high dividend-paying equities,
government securities, certificates of deposits, corporate bonds, money market
instruments, and debentures.

10. Income funds are a good option for investors who desire a steady and predictable
income. This type of fund has a lower risk of defaulting. A person who has retired
from work, for example, may need money for day-to-day costs and may prioritize an
income fund over all other assets. Conservative investors seeking higher returns
than their typical safe-havens can consider income ETFs.

11. Funds of funds are another type of multi-asset fund. It is a pooled investment vehicle
that invests in other types of funds. It is also known as multi-manager investment.
To put it another way, its portfolio is made up of many underlying portfolios from
other funds. These assets take the place of direct investments in bonds, stocks, and
other securities.

12. FOFs often invest in hedge funds or other mutual funds. There are two types of
FOFs: fettered and unfettered. Unfettered FOFs can invest in funds that are not held
by the same firm that manages the FOF, whereas fettered FOFs can invest in funds
that are held by the same company that manages the FOF.