What is a balanced fund?

Balanced funds invest with the goal of both income and capital appreciation. Balanced funds can benefit investors with a low risk tolerance, such as retirees, by offering capital appreciation and income. A balanced fund is a type of hybrid fund, which is an investment fund characterized by its diversification among two or more asset classes.

What are multi-asset or Balanced funds?

Balanced mutual funds invest in both bonds, which focus primarily on income, and stocks, which aim for investment growth. The bond portion of the fund helps offset the risks associated with the stock portion—providing you with a "balanced" investment.

Should you rebalance a balanced mutual fund?

Balanced mutual funds invest in both bonds, which focus primarily on income, and stocks, which aim for investment growth. The bond portion of the fund helps offset the risks associated with the stock portion—providing you with a "balanced" investment. You never have to rebalance a balanced fund—it's done for you automatically.