Balanced Fund


DEFINITION of 'Balanced Fund'

A fund that combines a stock component, a bond component and, sometimes, a money market component, in a single portfolio. Generally, these hybrid funds stick to a relatively fixed mix of stocks and bonds that reflects either a moderate (higher equity component) or conservative (higher fixed-income component) orientation.

BREAKING DOWN 'Balanced Fund'

A balanced fund is geared toward investors who are looking for a mixture of safety, income and modest capital appreciation. The amounts that such a mutual fund invests into each asset class usually must remain within a set minimum and maximum.

Although they are in the "asset allocation" family, balanced fund portfolios do not materially change their asset mix. This is unlike life-cycle, target-date and actively managed asset-allocation funds, which make changes in response to an investor's changing risk-return appetite and age, or overall investment market conditions.

  1. Target-Date Fund

    A mutual fund in the hybrid category that automatically resets ...
  2. Growth And Income Fund

    A mutual fund or ETF that has a dual strategy of capital appreciation ...
  3. Asset Allocation Fund

    A mutual fund that provides investors with a portfolio of a fixed ...
  4. Global Fund

    A type of mutual fund, closed-end fund or exchange-traded fund ...
  5. All Weather Fund

    A mutual fund that tends to perform reasonably well during both ...
  6. Load Fund

    A mutual fund that comes with a sales charge or commission. The ...
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