What is a blend fund?

Therefore, a blend fund can simply be an index fund which encompasses both growth and value stocks inherently in its compositions. Blend funds may also focus on a combination of capital appreciation, growth and income. Some blend funds may report defined investment allocations such as 40% growth stocks, 40% value stocks and 20% high quality bonds.

Are blend funds a good investment?

Rapid gains: While not guaranteed, blend funds can potentially provide investors with rapid gains, which are typically derived from the growth stocks in the portfolio. Professional management: Individuals who invest in blend funds don’t have to manage individual stocks themselves. All investments carry some level of risk, blend funds included.

Is a balanced fund the same as a blend fund?

Balanced fund is a term that’s sometimes confused with blend fund, but they aren’t the same thing. The difference lies in what they invest in. With a blend fund, you’re most often getting a mix of two different stock types: value and growth. But with balanced funds, the goal is creating a target asset mix between stocks and bonds.