Mutual Funds/Balanced Funds

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Question
Hello:

Is the Standard and Poor's 500 or a Standard & Poor's 500 index fund a good bench mark to use for measuring the performance for a balanced mutual fund?

How does an investor know whether or not a balanced fund is performing well?

I thank you for your reply.

Answer
Dear Kenneth:

Vanguard has a balanced index fund, VBINX. It's 60% in stocks, 40% in bonds.

VBINX might be used as a benchmark for any balanced fund you own or are interested in buying.

The index funds you mentioned are not 60-40.

Of course, you can buy the Vanguard fund itself--which has done pretty well.

$3,000 minimum.

Good luck.

Warren

Mutual Funds

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Warren Boroson

Expertise

Author of "Keys to Investing in Mutual Funds" (Barrons), "Ultimate Mutual Fund Guide" (Probus), "How to Pick Stocks Like Warren Buffett" (JKLasser), and "The Reverse Mortgage Advantage" (McGraw-Hill). Former financial columnist for Gannett News Service.

Experience

Author of 20 books; winner of 1996 Personal Finance award from Investment Company Institute and Washington University. Formerly on staffs of Money and Sylvia Porter's Magazine. Had a radio program (on WEVD) about mutual funds and a newsletter, FundDigest.

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