Stock funds are active investment funds which invest in equity securities and represent one of the highest potential returns compared to other types of funds. Stock funds may be managed using various fund management strategies. For example, investing in the stock of companies which are undervalued in the market, or investing in the companies of a specific industry or region.
Balanced Funds
Balanced investment funds are medium-risk funds that are suitable for investors who are willing to invest in stock, bond and money market instruments. The fund manager places the investors’ funds both in the conservative and risk-prone assets. The risk of balanced funds is lower than the stock funds, yet higher than the risk of the bond or reserve funds.
Bond Funds
Bond funds are the lowest-risk investment funds which invest in fixed-income securities. Nordea bond funds are placed both in the global bonds and corporate bonds with various risk degrees, credit ratings and yields. Bond funds are suitable for risk-averse investors who do not aim to achieve high profits but prefer less volatile investments.
Reserve Funds
Reserve funds are safe funds for short-term investments. Fund managers invest the assets in short-term low-risk bonds and money market instruments. These investment funds are attractive also in recession periods when money from the stock funds is often reinvested in reserve funds.
Funds of Funds
By choosing Nordea’s funds of funds (FOF), your navigation through the vastness of funds will become so much easier. The FOF are investments into various investment funds which offer a specific investment strategy in line with your desirable risk level, maturity term and investment goal. The FOF manager reviews the investment structure on a regular basis, and looks beyond affiliation to one market, industry or geographic area in order to find to most suitable investment options.