Investing term

What is Balanced fund?

A single fund that holds both stocks and bonds at a fixed ratio, automatically rebalanced.

A balanced fund holds both stocks and bonds in one wrapper at a roughly fixed ratio (often around 60/40) and rebalances itself automatically. It's a one-decision way to own a diversified portfolio: you buy the single fund and the manager keeps the mix steady, so you never have to rebalance by hand.

For example

Buy one share of a 60/40 balanced fund and you instantly own a diversified stock-and-bond portfolio that stays balanced on its own.

Balanced fund is taught hands-on in Stage 10 — Building Your First Portfolio.

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Related terms

AllocationHow your portfolio is split across asset classes (stocks, bonds, cash, alternatives).Core-and-satelliteA portfolio structure where most of your money sits in a 'core' diversified base, with smaller 'satellite' bets around the edges.DriftThe gradual shift in your portfolio's mix as some assets grow faster than others.HorizonHow long until you need the money.
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