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A balanced fund is a mutual fund that places its monies into several types of investment vehicles in the attempt to provide returns that include both income and growth. When a mutual fund puts money into common stocks, preferred stocks, bonds and even money market funds they are a balanced fund. This is also referred to as an asset allocation fund.
Investors looking for a blend of income and capital appreciation are attracted to balanced funds. The percentages applied to each asset class in this type of mutual fund will usually remain within a range of minimum and maximum values.
Other forms of this term include - balanced funds |