Mutual Funds/Balanced Funds



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.

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.


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Warren Boroson


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.


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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