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1.
What is the typical allocation of balanced funds?
60% stocks and 40% bonds. Balanced funds are typically weighted a little toward stocks.
2.
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.
3.
Why may balanced funds not be the ideal choice for intermediate-term investors?
Both of the above. You can often buy a short-term bond fund and a large-blend fund and pay less in annual expenses than if youd just bought a balanced fund. And some balanced funds may hold more in bonds than some in-betweeners need.
4.
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.
5.
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.
