Mutual Funds/Mutal Fund Investing

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Question
Hello:

If an investor invests in a balanced mutual fund, would he need to invest in any other mutual fund since a balance fund has stocks and bonds and perhaps foreign invests as well?

I thank you for your reply.

Answer
Hi. In theory, a balanced mutual fund does give you additional diversification which allows for easy, one stop investing. However, there is a variance between balanced mutual funds in regards to how much they have in stocks vs bonds as well as different types of stocks and bonds. Therefore, you need to make sure the balanced fund you are investing in matches up with your risk tolerance and the desired overall mix you are wanting for your portfolio. I hope this helps!

Mutual Funds

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John D Smith, CFP

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I can answer detailed questions regarding mutual fund investing, retirement planning, education planning and related comprehensive wealth management and investment concerns.

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