Define: Balanced Fund

UK Accounting Glossary

Definition: Balanced Fund



Advertisement



Full Definition of Balanced Fund


A balanced fund is a mutual fund that invests in stocks, bonds, and money market investments (cash). The proportion of investments varies by the balanced fund, but the investment goals are similar: to conserve principal, provide a source of income, and provide a level of long-term growth. Thus, a balanced fund must strive to meet more than one investment objective. The stocks in a balanced fund provide growth while bonds provide income and conservation of principal. A balanced fund has a fairly low-risk level due to the varying risk levels of its stocks, bonds, and cash. However, the trade-off is that the balanced fund will not be a stellar performer: its stocks are generally those of larger companies that are not very volatile. The balanced fund is often the mutual fund of choice among the risk-averse.


Advertisement




Cite Term


To help you cite our definitions in your bibliography, here is the proper citation layout for the three major formatting styles, with all of the relevant information filled in.

Page URL
https://payrollheaven.com/define/balanced-fund/
Modern Language Association (MLA):
Balanced Fund. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. February 18, 2020 https://payrollheaven.com/define/balanced-fund/.
Chicago Manual of Style (CMS):
Balanced Fund. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. https://payrollheaven.com/define/balanced-fund/ (accessed: February 18, 2020).
American Psychological Association (APA):
Balanced Fund. PayrollHeaven.com. Retrieved February 18, 2020, from PayrollHeaven.com website: https://payrollheaven.com/define/balanced-fund/

Definition Sources


Definitions for Balanced Fund are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • BusinessDictionary.com
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 4th February 2020.