The balanced fund is a type of mutual fund that contains both stocks and bonds. It is also called a blended fund.
The balanced fund is a middle-of-the-road fund made up of investments that will achieve both moderate-income and moderate capital growth.
Balanced mutual funds are geared toward investors who are looking for a mixture of safety, income, and modest capital appreciation.
The bond component of a balanced fund serves two purposes.
Creation of an income stream
Tempers portfolio volatility
Balanced Funds are the same as Asset Allocation Funds.