Business and Personal Finance Dictionary

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• BALANCED FUND
  
  Balanced funds are mutual funds that invest in a combination of common stock, preferred stock, and bonds to meet their dual investment goal of seeking a strong return while minimizing risk. In a surging stock market, a balanced fund is unlikely to perform as well as a fund invested solely in stocks. But in a downturn, it may to produce a stronger return than a stock fund, since losses in its equity investments may be offset by a stronger perfomance in its fixed-income investments. Balanced funds also generally produce more income than straight stock funds.
  
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