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Flexible Fund

A flexible (variable) fund is a fund that, in terms of portfolio limits, falls into none of the other fund types defined by the CMB and can change its asset allocation over a wide range at the manager’s discretion. Debt, equity and precious metal funds must keep a fixed share of the portfolio (at least 80% under the communiqué) continuously in a single asset group.
Contents
  1. 1.Key points
  2. 2.How it works
  3. 3.Interpretation
  4. 4.Pitfalls
  5. 5.Official sources
  6. 6.Frequently asked questions

Key Points

  • Flexible funds have no such concentration requirement; they can move between equities, bonds, gold, foreign currency and money market instruments within the limits of their stated strategy.
  • The risk and return of flexible funds vary widely with the manager’s allocation choices.
  • the “flexible” label says nothing about how risky a fund is.

How It Works

the investment strategy, benchmark and asset ranges are set out in the prospectus. Under the CMB guideline, flexible funds that keep at least 80% in foreign-currency assets carry “(Döviz)” in their name.

Interpretation

The risk and return of flexible funds vary widely with the manager’s allocation choices. Two flexible funds can look nothing alike, so the portfolio breakdown and risk value should always be read together.

Pitfalls

the “flexible” label says nothing about how risky a fund is. Strategy changes can alter a fund’s character over time. A broadly defined benchmark makes performance harder to judge.

Official Sources

Official regulation and sources the definition is based on.

Pages Where This Term Appears

Related Terms

Frequently Asked Questions

A flexible (variable) fund is a fund that, in terms of portfolio limits, falls into none of the other fund types defined by the CMB and can change its asset allocation over a wide range at the manager’s discretion.

the investment strategy, benchmark and asset ranges are set out in the prospectus. Under the CMB guideline, flexible funds that keep at least 80% in foreign-currency assets carry “(Döviz)” in their name.

Prepared by: Yatırımcı.AI Research TeamLast reviewed: Method: MethodologyEditorial policy