Balanced funds do not necessarily deliver balanced risk

Skandia says the findings point to an urgent need to review existing investments in the £500bn industry, and adjust or consolidate them where appropriate into portfolios that are directly aligned with the individual investor's risk profile. The research analysed 489 balanced managed life funds using three-year volatility and performance figures. The results showed a wide range not just in performance but also in risk. Although investors might expect a balanced fund to have a risk rating of 5 using Skandia's risk scale of 1-10, (with1 being cash and 10 being global equity as represente...