balanced fund

Balanced Fund

A mutual fund that invests its assets into the money market, bonds, preferred stock, and common stock with the intention to provide both growth and income. Also known as an asset allocation fund.

Investopedia Commentary

A balanced fund is geared towards investors looking for a mixture of safety, income, and capital appreciation. The amount the mutual fund invests into each asset class usually must remain within a set minimum and maximum.

Related Links

Mutual Fund Basics Tutorial
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See also: Asset Allocation Fund, Global Fund, Mutual Fund

balanced fund

An investment company that spreads its investments among stocks and bonds. Essentially, a balanced fund is a middle-of-the-road fund made up of investments that will achieve both moderate income and moderate capital growth.