Business, Legal & Accounting Glossary
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.
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.
Definitions for Balanced Fund are sourced/syndicated and enhanced from:
This glossary post was last updated: 4th February, 2020 | 0 Views.