What is a 'Blend Fund'

A blend fund is a category of equity mutual funds with portfolios that are made up of a mix of value and growth stocks.

This is also referred to as a "hybrid fund".

BREAKING DOWN 'Blend Fund'

A blend mutual fund has its origins in the graphical representation of a fund's essential characteristics in an equity style box, which was created and popularized by the investment research firm, Morningstar, Inc.

A style box for stocks contains nine squares. The vertical axis is divided into three categories, which represent company size - large, medium, and small - as determined by a fund's market capitalization. The horizontal axis is also divided into three categories based on the stocks in a fund's stock portfolio: value, value/growth blend and growth stocks.

As such, there are three versions of a stock blend fund, which would be differentiated simply by company size.

RELATED TERMS
  1. Equity Style Box

    A visual representation of the principle investment characteristics ...
  2. Style Box

    Created by Morningstar, a style box is designed to visually represent ...
  3. Investing Style

    In the context of stock mutual fund investing, refers to using ...
  4. Value Fund

    A stock mutual fund that primarily holds stocks that are deemed ...
  5. Diversified Common Stock Fund

    A mutual fund that invests its assets in a relatively large number ...
  6. Style

    The investment approach or objective that a fund manager uses ...
Related Articles
  1. Investing

    Understanding The Mutual Fund Style Box

    Evaluate your investments with this simple tool.
  2. Investing

    Too Many Mutual Funds?

    Is there a magic number you should be aiming for? Find out here.
  3. Financial Advisor

    Advising FAs: Explaining Mutual Funds to a Client

    More than 80 million people, or half of the households in America, invest in mutual funds. No matter what type of investor you are, there is bound to be a mutual fund that fits your style.
  4. Investing

    Mutual Funds: Does Size Really Matter?

    The growth of mutual funds isn't always cause for celebration. Read on to find out why.
  5. Investing

    Digging Deeper Into Mutual Fund Names

    Go beyond the name and find out if that fund fits into your portfolio.
  6. Investing

    3 International Equity Mutual Funds to Avoid in 2016 (AWPCX, BJBIX)

    Discover three international equity funds that investors should avoid in 2016 due to their poor fundamentals, high risks and poor track records.
  7. Investing

    The 5 Best American Funds

    Discover five of the best-performing mutual funds offered by American Funds, based on the funds' five-year average annualized returns.
  8. Financial Advisor

    A Mutual Funds Guide for Young Investors

    Learn how mutual funds work, why they are so popular and how younger investors can get started by putting mutual funds in their IRAs or 401(k)s.
  9. Investing

    Trends in Capital Flows: U.S. Equities

    Analyze asset flow data for U.S. equity mutual funds and ETFs from 2014 and 2015 to identify changes in demand, investor sentiment and outlook.
RELATED FAQS
  1. What is the difference between a blend fund and a balanced fund?

    As both "blend"and "balanced" describe the particular asset mix of mutual funds, determining the exact distinctions between ... Read Answer >>
  2. How do I judge a mutual fund's performance?

    Evaluate mutual fund performance utilizing resources such as Morningstar; compare the fund with others in its peer group ... Read Answer >>
  3. Why is it that when investors realize returns on a mutual fund, its price tends to ...

    Mutual funds have been in existence since 1924, when the first open-ended mutual fund was created. Since then, the market ... Read Answer >>
  4. How do you find out the price of a mutual fund?

    The easiest way to find out the price of a mutual fund is to look at its net asset value (NAV). NAV is the total value of ... Read Answer >>
  5. Can mutual funds only hold stocks?

    Learn about which types of mutual funds consist of only stocks, which may include stocks in addition to other assets and ... Read Answer >>
Hot Definitions
  1. 403(b) Plan

    A retirement plan for certain employees of public schools, tax-exempt organizations and certain ministers. Generally, retirement ...
  2. Master Of Business Administration - MBA

    A graduate degree achieved at a university or college that provides theoretical and practical training to help graduates ...
  3. Liquidity Event

    An event that allows initial investors in a company to cash out some or all of their ownership shares and is considered an ...
  4. Job Market

    A market in which employers search for employees and employees search for jobs. The job market is not a physical place as ...
  5. Yuppie

    Yuppie is a slang term denoting the market segment of young urban professionals. A yuppie is often characterized by youth, ...
  6. SEC Form 13F

    A filing with the Securities and Exchange Commission (SEC), also known as the Information Required of Institutional Investment ...
Trading Center