Mutual Funds To Invest In

Balanced Funds

A fund considered balanced will have a healthy mix of both an equity or stock side, as well as a bond or recurring income side. The goal of this fund is to achieve balance by always having some part of the investment performing well. Typically, when markets are doing well, the equity side of things will be stronger than the bond side. Conversely, when markets are down or falling, the fixed income bond side of this fund may look like the better investment. Different mixes of stocks and bonds can exist to reflect the specific risk tolerance of the investor. Investors wanting to take on more risk for potentially higher returns can purchase a fund that skews more heavily to the equity side while a more conservative investor may skew more towards a bond-heavy fund. Some even more conservative funds like this include a money market aspect. The key is to understand what types of risk you are willing to take and analyze the underlying securities to see if they fall in line with your investment strategy.