A balanced investment trust incorporates multiple asset classes (e.g., domestic and foreign stocks and bonds) in a single product.

 

(1) Fixed asset allocation

Multiple products with different asset allocation ratios (Aggressive Growth, Growth, Stability, etc.) are generally offered.

Rebalancing is conducted regularly to maintain the pre-determined asset allocation.

 

(2) Target Date

The product is offered in a series of products with different target dates (target years). With the retirement date set as Target Date, the management company automatically changes the asset allocation over time. Generally, risk tolerance level lowers as age increases, so asset allocation is gradually shifted to reduce risk.

 

(3) Risk-control

The management company adjusts the asset allocation automatically in accordance with changes in market environment in order to limit risk levels to a certain range.

For instance, in the event of a sudden market change, the asset allocation is changed to reduce equities and increase cash and the like in order to control risk.