Cautious managed funds

What does cautious managed mean? A cautious managed fund is one that is classified in the least adv...

What does cautious managed mean? A cautious managed fund is one that is classified in the least adventurous of the Investment Management Association's (IMA) three managed fund sectors - Active, Balanced and Cautious Managed. According to the IMA sector definitions, cautious managed funds must invest in a range of assets, with no more than 60% in equities (including convertibles) and at least 30% in cash and fixed interest. At least half of the fund's holdings must be sterling or euro denominated. I'm not sure 60% in equities sounds very cautious. Don't forget it is a 60% maximum - it'...