Balanced funds usually allocate funds between stocks and bonds, and make adjustments according to market conditions and investment strategies of fund managers. When the stock market rises, the proportion of stock allocation may be higher, and when the market falls, the proportion of bond allocation may be higher. This strategy can help balanced funds reduce risks when the market fluctuates, while pursuing long-term investment returns.
In addition, balanced funds can also invest in other asset classes, such as cash, money market instruments and alternative investments. , further reduce risks and improve returns. Balanced funds are usually suitable for investors who pursue stable investment returns, are willing to take certain risks and have a long investment period.
It should be noted that balanced funds cannot completely eliminate investment risks, because both the stock and bond markets may be affected by various factors, resulting in price fluctuations. However, through professional fund management and diversified investment, balanced funds can reduce investment risks to a certain extent and help investors achieve long-term investment goals.