BALANCED FUNDS

Balanced funds invest in common stock, preferred stock, bonds, and money market investments to provide both current income and growth with a minimum of volatility.

The objective of balanced funds is to provide both of these ends together. On the average, their ratio of stocks to other investments is about 60:40. Managers of balanced funds can, however, shift this ratio one way or the other to take advantage of high interest rates or stock market growth. Balanced funds generally have low volatility and are popular with investors seeking current income with growth potential.

This concludes our look at objectives of mutual funds. Now let us look at funds that are classified by what they invest in.