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What is a Balanced Mutual Fund?

What is a Balanced Mutual Fund?. Kauanoe Joaquin. Balanced Mutual Funds. Balanced funds are mutual funds that invest in a portfolio of common stocks, preferred stocks, and bonds to meet their investment goal of seeking a strong return while moderating risk.

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What is a Balanced Mutual Fund?

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  1. What is a BalancedMutual Fund? Kauanoe Joaquin

  2. Balanced Mutual Funds • Balanced funds are mutual funds that invest in a portfolio of common stocks, preferred stocks, and bonds to meet their investment goal of seeking a strong return while moderating risk. • Balanced funds generally produce more income than stock funds, though their total return may be less than stock fund returns in a strong stock market.

  3. Types of Funds • AMRMX- American Funds American Mutual (value) • FPPFX- FPA Perennial (blend) • PRNHX- T. Rowe Price New Horizons (growth) • MERDX- Meridian Growth (growth)

  4. RiSKS • Fluctuating returns: you may not always get back what you put into the investment. • Overdiversification: the point of diversification is to reduce risk, but if you invest in too many companies your risk is just as high. • Fees: even if your stock isn’t making money, you still must pay the fees associated with owning these stocks.

  5. THE BASiCS • Medium risk investment. • Private investors are most likely to invest in these funds to diversify their profits.

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