BALANCED MUTUAL FUNDS
Learn even more about this topic with the Encyclopedia of Personal Finance™
One way to minimize your risk when you invest is to diversify.
Diversifying spreads your money across several different types of investments.
When the values of some of your investments go down, chances are others will
remain stable or even go up if your portfolio has enough diversification. A
balanced mutual fund is one of the simplest ways to diversify your
investments. This tutorial will help you understand what balanced funds are and
how they can help your portfolio. We will look at the following topics:
- WHAT ARE BALANCED MUTUAL FUNDS?
- COMPOSITION OF BALANCED MUTUAL FUNDS
- ASSET ALLOCATION VS BALANCED FUNDS
- EVALUATING BALANCED MUTUAL FUNDS
- SUMMARY OF BALANCED MUTUAL FUNDS
Let's begin this tutorial by identifying exactly what a
balanced mutual fund does.