(New York)

Allocation funds don’t get a lot of discussion in the press, but they could be a good buy. With their broad mandate to invest in all manner of asset classes, an allocation fund can theoretically be a one-stop shop for advisors or retail investors. However, most of them have not lived up to their hype since broad allocation takes more research horsepower than the funds can afford. However, the T Rowe Price Global Allocation fund has been performing great. The fund invests in 20 different T Rowe funds across all strategies. “This fund represents our best thinking across different asset classes”, says the fund’s manager. It has beaten 92% of its category peers over the past three years.

FINSUM: Allocation funds can be a good choice if you want to merely deposit assets into a single vehicle. However, we would worry about having a great deal of one’s assets with a single manager.