Which type of fund typically has a higher proportion of equity?

Managed funds typically have a higher proportion of equity as they are actively managed investment portfolios that aim to achieve capital appreciation, often by investing a significant part of their assets in stocks or equity securities. Portfolio managers of managed funds select a range of investments to optimize returns, and this can lead to a higher allocation to equities, especially in favorable market conditions.

In contrast, bond funds primarily focus on fixed-income securities, meaning their investments are largely composed of bonds rather than equities. Cash funds, also known as money market funds, invest in short-term, low-risk instruments, maintaining high liquidity with minimal exposure to equities. Mixed funds aim to diversify by including both equities and bonds, but the proportion of equity can vary widely and does not consistently represent a higher percentage in the portfolio compared to managed funds. Therefore, managed funds are characterized by their active investment strategies that favor a higher allocation to equities to achieve growth potential.