Mutual Fund Basics
While mutual funds typically invest primarily in either stocks or bonds, a balanced fund can seek the best of both. It could be considered a hybrid — holding bonds for income and equities for growth. The portfolio manager maintains the asset mix consistent with the fund’s investment policies, so there’s no need for investors to constantly adjust allocations.
Investments are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity, so they may lose value.
Investors should carefully consider investment objectives, risks, charges and expenses. This and other important information is contained in the fund prospectuses and summary prospectuses, which can be obtained from a financial professional and should be read carefully before investing.
Content contained herein is not intended to serve as impartial investment or fiduciary advice. The content has been developed by Capital Group, which receives fees for managing, distributing and/or servicing its investments.