Balanced Investment Strategy


DEFINITION of 'Balanced Investment Strategy'

A portfolio allocation and management method aimed at balancing risk and return. Such portfolios are generally divided equally between equities and fixed-income securities.

BREAKING DOWN 'Balanced Investment Strategy'

Although the balanced investment strategy aims to balance risk and return it does carry more risk than those strategies aiming at capital preservation or current income. In other words, the balanced investment strategy is a somewhat aggressive strategy, and is suitable for those investors with a longer time horizon (generally over five years), and have some risk tolerance.

  1. Aggressive Investment Strategy

    A portfolio management strategy that attempts to maximize returns ...
  2. Balanced Fund

    A fund that combines a stock component, a bond component and, ...
  3. Asset Class Breakdown

    The relative percentages of core asset classes such as equities, ...
  4. Current Income

    The investment objective for a moderately conservative portfolio ...
  5. Preservation Of Capital

    An investment strategy where the primary goal is to preserve ...
  6. Defensive Investment Strategy

    A conservative method of portfolio allocation and management ...
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