Equity Investing Information

Stocks - Mutual Funds - Private Equity - Real Estate

Balanced Funds

Balanced mutual funds are a popular form of pool investing, where capital is split between several different economic sectors and/or countries.

The mangers of these funds continually shift investors between stocks, bonds, cash, and other securities, so as to reduce risk and take better advantage of current economic trends.

Like all investments with an equity component, balanced funds will include some element of risk, at least in the short term, but this risk is reduced by the presence of bonds, GICs, and low risk securities within the portfolio.

In many cases, balanced funds will establish quotas dictating that a certain percentage of invested capital must remain in a given country, industry, or asset class.