Balanced Fund

A Balanced Fund is a type of mutual fund that invests in a mix of equities (Stocks) and fixed-income Securities (Bonds) to provide both growth and income. The objective is to achieve a balance between risk and return, offering investors a diversified portfolio that can adapt to changing market conditions.

Typically, a Balanced Fund maintains a target Asset allocation, often around 60% equities and 40% Bonds, although this can vary. The fund manager adjusts the allocation based on market trends and economic conditions to optimize Returns while managing risk.

Examples of Balanced Funds include:

• Vanguard Balanced Index Fund: This fund aims for long-term Capital-appreciation/">Capital Appreciation and income by Investing in a mix of U.S. Stocks and Bonds.
• Fidelity Balanced Fund: This fund invests in both Stocks and Bonds, with a focus on providing Capital growth and income.

Cases where a Balanced Fund might be suitable include:

• Investors seeking moderate growth with less risk than an all-Equity fund.
• Individuals planning for retirement who want a diversified approach without actively managing multiple funds.