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1.
What does a balanced fund own?
A balance of stocks and bonds. The typical balanced fund invests about 60% of its assets in stocks and 40% in bonds.
2.
Intermediate-term investors are usually advised to _______.
Use stocks to grow their money and bonds to protect what they make. This is a good balance for many intermediate-term goals.
3.
Which element is perhaps the most important for intermediate-term investors?
Diversification. Intermediate-term goals require a certain amount of growth without volatility, which can ruin the growth. Thats why intermediate-term goals tend to include a balance of volatilities in their investments.
4.
Intermediate-term investing begins with _______.
Determining your goals and what theyll cost. As with long-term investing, intermediate-term investing revolves around goals and their costs. Choosing the right investment is secondary.
5.
What is the best investment option for the growth portion of an intermediate-term portfolio?
A large-cap blend fund. Mutual funds offer instant diversification, and large-cap blend funds invest in the core of the U.S. market and include value and growth stocks among their holdings. They are steadier than most other types of stock funds.
