Introduction to Balanced Mutual Funds

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This tutorial looks at the typical securities, investment objectives, risks, and performance issues of balanced mutual funds.

What you will learn

  • What Are Balanced Mutual Funds?
  • Composition of Balanced Mutual Funds
  • Asset Allocation vs. Balanced Funds
  • Evaluating Balanced Mutual Funds

What do you know?

Introduction to Balanced Mutual Funds

One way to minimize investment risk is to diversify. Diversifying spreads your money across several different types of investments. When the values of some of your investments go down, chances are others will remain unchanged or even go up if your portfolio has enough diversification. A balanced mutual fund is one of the simplest ways to diversify your investments. As an educated investor you need to understand what balanced funds are and how they can help your portfolio.