A fund holding stocks and bonds together in set proportions
Equities, bonds and sometimes property are combined at weights fixed in advance. Because the parts move differently, the whole tends to swing less than an all-equity product. The manager also handles the adjustment when weights drift, so the holder never rebalances by hand.
In a 60% equity and 40% bond fund, a 10% drop in stocks may show up as roughly 6% overall.
For learning, not investment advice. Decisions are your own.
StockFit · TrueNorthLabs Inc.