U.S Cross Asset Fund

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U.S Cross Asset Fund

Category: Research Paper

Subcategory: Finance

Level: University

Pages: 4

Words: 1100

U.S Cross Asset Fund

U.S Cross Asset Fund
A cross-asset fund is a group of asset classes combined and utilized as an investment. These asset classes may take the form of equity, bond or cash. It makes up a multi-asset class investment where more than one assets are involved hence a group of assets. One fund that is common in the United States offering financial performance is the Growth Fund of America. This is one of the managed funds that have about 65% of the assets invested in a joint stock where about 25% of it is global. This fund has a history of compelling investors and managers for it is a good deal. Its key objective is to provide people with the growth of capital for businesses and is very flexible to venture into investments provided there are best opportunities for growth. The Growth Fund of America invests in the government securities of the U.S, cash equivalents and bonds.
How Derivatives are Used to Hedge/Generate Performance
In scenarios where investors are exposed to a wide array of changing risks, derivatives are used to manage such risks in a business organization (Maguire, 2005). Markets to do with derivatives have experienced growth regarding securities that are at the disposal of traders. Performance generation includes how to manage the risks effectively. The common derivatives with the Growth Fund of America include the future contracts, swaps, and options.
Future contracts are standardized contracts that can be traded on…

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