Umbrella fund
Key points
- Umbrella types define which assets the sub-funds mainly invest in: equity, debt instruments, money market, precious metals, fund of funds, mixed, variable, participation, hedge and real estate, among others.
- The umbrella type gives investors a first idea of the fund’s risk and return character: money market is low risk, equity is high risk.
- "variable" and "mixed" umbrellas allow wide discretion, so the fund name may not fully reflect its content.
Formula / calculation
an umbrella type requires at least 80% of the portfolio to be invested in that asset class (for example funds under the equity umbrella hold at least 80% stocks). The Yatırımcı.AI fund categories page groups funds by umbrella type.
Interpretation
The umbrella type gives investors a first idea of the fund’s risk and return character: money market is low risk, equity is high risk. Comparing funds under the same umbrella gives a fair performance comparison.
Pitfalls
"variable" and "mixed" umbrellas allow wide discretion, so the fund name may not fully reflect its content. Even funds under the same umbrella can differ substantially in strategy. Umbrella types can change; follow the prospectus.
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Frequently asked questions
What is Umbrella fund?
An umbrella fund is a structure in which several sub-funds with the same type of investment strategy are gathered under a single legal roof.
How is Umbrella fund calculated?
an umbrella type requires at least 80% of the portfolio to be invested in that asset class (for example funds under the equity umbrella hold at least 80% stocks). The Yatırımcı.AI fund categories page groups funds by umbrella type.
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