Balanced Fund

What does it mean?
A mutual fund that invests its assets into the money market, bonds, preferred stock, and common stock with the intention to provide both growth and income. Also known as an asset allocation fund.

In Other Words...
A balanced fund is geared towards investors looking for a mixture of safety, income, and capital appreciation. The amount the mutual fund invests into each asset class usually must remain within a set minimum and maximum.

Related Links
Mutual Fund Basics Tutorial - Learn about the basics--and the pitfalls!--of investing in mutual funds.

Balanced Investment Philosophy - An example of a firm that follows this strategy.

Related Terms
Asset Allocation Fund | Global Fund | Mutual Fund

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