$$ Investing and Money Glossary, terms and definitions.

Balanced Fund

A Balanced Fund is a mutual fund that invests in some mix of stocks and bonds. The advantages with a balanced fund is that you get one-stop shopping: it handles asset allocation and mixes equities with fixed income securities. The drawback with a balanced fund is that you do not get to choose your own asset allocation. Another possibility instead of a balanced fund, you could for instance choose a good equity fund and a good bond fund and then decide your own proportions.