Economics Mutual Funds Questions
A balanced fund is a type of mutual fund that invests in a mix of stocks, bonds, and cash equivalents. The objective of a balanced fund is to provide investors with a balanced portfolio that offers both growth and income. The allocation of assets in a balanced fund is typically predetermined and maintained by the fund manager, who adjusts the holdings based on market conditions and the fund's investment strategy. This diversification helps to reduce risk and volatility, making balanced funds suitable for investors seeking a moderate level of risk and potential returns.