Balanced Funds
A balanced fund is an investment fund that maintains a diversified portfolio of both stocks and bonds, often in a fixed ratio (e.g., 60% stocks and 40% bonds). The goal is to achieve growth from stocks and stability/income from bonds.
Key Features of Funds
Diversification
Reduces risk by spreading investments across asset classes.
Moderate Risk
Less risky than pure stock funds, but with more growth potential than bond-only
funds.
Automatic Rebalancing
Fund managers adjust the portfolio to maintain the target asset mix.
Income + Growth
Offers both capital appreciation and regular income.
Types of Funds
Equity-Oriented Balanced Funds – Higher allocation to stocks.
Debt-Oriented Balanced Funds – Higher allocation to bonds.
