Cautious funds - anything but?
Many popular Cautious managed funds aren’t as safe as investors are led to believe. In the face of recent equity market uncertainty the Mixed Investment 20-60% sector (a fallout of the formerly named Cautious Managed sector) has dominated recent fund sales. However the fortunes of many popular ‘cautious managed’ funds are tied more closely to equity markets than they realize. Furthermore, as a 30 year bull market comes towards an end even those funds with more bond allocation, to reduce stock market risk, are exposed.