What is balance fund?
GUANGZHOU (Fund China) – Balance fund is a kind of fund that pursues not only long-term capital appreciation but also current income. Such funds invest mainly in bonds, preference shares and ordinary shares. These securities have relatively stable portfolio proportion in the investment portfolio. In general, balance fund will use 25 to 50 percent of its total asset to invest in preference shares and bonds and the rest asset will be used to invest in ordinary shares. The risk and return of balance fund is between growth fund and income fund.
Copyright Fund China 2009.
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