Balanced funds are funds that pursue both long-term capital appreciation and current income. These funds mainly invest in bonds, preferred stocks and some common stocks. These securities have a relatively stable proportion in the investment portfolio. They are generally

25%-50% of total assets are invested in preferred stocks and bonds, and the remainder is invested in common stocks.

Its risk and return profile is between growth funds and income funds.

The risk and return characteristics of balanced funds are between growth and income. They pursue both long-term capital appreciation and current income. They mainly invest in bonds, preferred stocks and some common stocks. These securities have a certain amount in the investment portfolio.

A relatively stable portfolio ratio is generally to invest 25%-50% of total assets in preferred stocks and bonds, and the rest in common stock investments.

Balanced funds are a type of fund that focus on both capital appreciation and current income.

Because balanced funds must allocate appropriately in stocks and bonds, generally speaking, the risks and returns are lower than those of stock funds. They are a type that can be attacked when advancing and defended when retreating. In a volatile market, they are more suitable to follow the market.

Adjust the stock-bond ratio according to changes in order to balance returns and risks.

Judging from the long-term overseas market performance, among various mutual funds in Asia, the total return of balanced funds in the past 10 years has far exceeded that of other types of funds, including stock funds, which proves that balanced funds are volatile.

The ability to invest stably in market conditions.

Therefore, for investors with low risk tolerance, balanced funds can be a key fund type to focus on in volatile markets.

Balanced funds are favored by many investors because of their relatively neutral risk and return. In the United States, nearly a quarter of open-end funds adopt the form of balanced funds.

Types of balanced funds Balanced funds can be roughly divided into two types: one is the stock-bond balanced fund, which means that the fund manager will promptly adjust the stock-bond allocation ratio according to market changes.

When the fund manager is optimistic about the stock market, he will increase his stock position, and when he believes that there may be an adjustment in the stock market, he will increase his bond allocation accordingly.

Another type of balanced fund, while balancing stocks and bonds, it puts more emphasis on dividends.

Thinking more about making a profit is also one of the ways to avoid risks.

Characteristics of balanced funds and their differences from various types of funds Classification characteristics Growth funds take the pursuit of long-term asset appreciation and profitability as their basic goals and invest in the stocks or other securities of listed companies with good growth potential.

Income funds take the pursuit of high current income as their basic goal, and take securities that can bring stable income as their main investment objects.