Balanced Fund
Balanced fund - A common buzzword for a particular type of mutual fund
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If you choose to invest in a balanced mutual fund, you are investing in a mutual fund that tries to maintain a consistent portfolio mix that is comprised of bonds, preferred stocks, and common stocks.
The goal of a balanced fund is to try to achieve returns from the bond income stream, the dividend income stream, as well as capital appreciation from the stock growth.
This is a favorite investment of someone with perhaps a ten year time horizon (investor is approaching retirement so needs to be conservative with the principal - but cannot afford to miss the growth opportunities over the ten year period).
