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Finance: What are Balanced Funds? 37 Views

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Description:

What are Balanced Funds? Balanced funds are a combination of different investments, hence “balanced.” They can be comprised of stocks and bonds as well as money market funds and are set up using the investor’s risk preferences.

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Transcript

00:00
Finance a la shmoop what are balanced funds? well this is a teeter
00:08
and this is a totter and this thing here is the fulcrum and here's you madam [Woman sitting on the fulcrum]
00:12
imbalanced funds sitting in the middle a gentle breeze sways you left toward a
00:18
little more yield or interest on bond investments and then another breeze
00:22
sways you right toward a little more growth or capital appreciation from [woman swaying right]

00:27
equities a balanced fund is a type of mutual or index fund which generally
00:32
keeps an even ish mix of growth and income for investors who don't want the
00:37
volatile sharp rocky mountain peaks and valleys that growth only throws at you [Growth chart with peaks and valleys]
00:42
but well they want a bit more excitement than all bonds got it or rather they can
00:47
handle a bit more risk in their lives than what a simple bond income fund
00:51
would deliver to them you know a whole lot of boring yield balance is almost [Woman balancing]
00:55
always good for zen.. oops didn't see that breeze coming
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