Balanced fund
Balanced fund
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.
Balanced Mutual Fund
A mutual fund with a portfolio mixing stocks, bonds, and cash equivalents in different types of securities in a more-or-less fixed ratio. Balanced mutual funds are used for long-term investing. They also seek to diversify one's portfolio and avoid volatility in any one market. It is an example of an asset allocation fund.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
balanced fund
An investment company that spreads its investments among stocks and bonds. Essentially, a balanced fund is a middle-of-the-road fund made up of investments that will achieve both moderate income and moderate capital growth.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.
Balanced fund.
Balanced funds are mutual funds that invest in a portfolio of common stocks, preferred stocks, and bonds to meet their investment goal of seeking a strong return while moderating risk.
Balanced funds generally produce more income than stock funds, though their total return may be less than stock fund returns in a strong stock market.
In a flat or falling stock market, however, disappointing returns on equity investments may be offset by a stronger performance from a balanced fund's fixed-income investments.
Balanced funds are sometimes described as a type of asset allocation fund, which provides the opportunity to spread your money among asset classes with one investment.
Dictionary of Financial Terms. Copyright © 2008 Lightbulb Press, Inc. All Rights Reserved.