| Balanced Funds |
You've heard that stocks are great for long-term investing but go up and down a lot. You've heard that bonds might help, but you're not sure how they work with stocks. Or maybe you're just new to investing and need a little help.
Chances are you need a little balance! Balanced funds are like one-stop shopping. They invest in several asset classes – stocks, bonds, cash – and stay balanced over time to reflect changes in the economy. With a balanced fund, it's possible for you to be diversified even if you invest all your money in one investment fund.
Not all balanced funds are the same. For example, in the FRS Investment Plan, you can choose a conservative, moderate or aggressive fund. Each provides a different mix of stocks, bonds, and cash to suit different tastes and objectives.
What's so great about balance? Balanced funds provide an automatic mix (or diversification) of your money. That means your eggs aren't all in the same basket. So when the markets go up or down, you don't have to panic. You have some automatic protection. However, you should carefully compare fees, because some balanced funds not offered by the FRS have high fees.
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