U.S. Conservative/Balanced Allocation

U.S. conservative/balanced allocation mutual funds and ETFs are diversified funds that own... U.S. conservative/balanced allocation mutual funds and ETFs are diversified funds that own a basket of U.S. blue chip stocks and bonds. The aim of these funds is to deliver both consistent income and capital appreciation to investors while maintaining a broadly diversified portfolio of U.S. based securities. These funds, which can be actively or passively managed, may, depending on their mandate, invest in: U.S. government bonds (federal, state, or municipal), corporate bonds, corporate debentures, bonds of government-sponsored enterprises, preferred shares, or common shares. Investors buy these funds because of the income potential they offer, as well as the possibility for capital gains. These funds can be designed with different risk tolerances in mind, although due to their nature they are all fairly risk-averse. A very conservative fund may be heavily tilted towards U.S. federal government bonds, while a less conservative fund may own some mid-cap U.S. equity securities. Whether a particular fund is appropriate for an individual will depend on their given risk tolerance and investment objectives. Last Updated: 02/05/2025 View more View less

U.S. conservative/balanced allocation mutual funds and ETFs are diversified funds that own a basket of U.S. blue chip stocks and bonds. The aim of these funds is to deliver both consistent income and... U.S. conservative/balanced allocation mutual funds and ETFs are diversified funds that own a basket of U.S. blue chip stocks and bonds. The aim of these funds is to deliver both consistent income and capital appreciation to investors while maintaining a broadly diversified portfolio of U.S. based securities. These funds, which can be actively or passively managed, may, depending on their mandate, invest in: U.S. government bonds (federal, state, or municipal), corporate bonds, corporate debentures, bonds of government-sponsored enterprises, preferred shares, or common shares. Investors buy these funds because of the income potential they offer, as well as the possibility for capital gains. These funds can be designed with different risk tolerances in mind, although due to their nature they are all fairly risk-averse. A very conservative fund may be heavily tilted towards U.S. federal government bonds, while a less conservative fund may own some mid-cap U.S. equity securities. Whether a particular fund is appropriate for an individual will depend on their given risk tolerance and investment objectives. Last Updated: 02/05/2025 View more View less