Much like someone who is conservative politically, a conservative investor does not take much risk, and aims to limit the change in their portfolio. People who use this investment strategy pick super-safe securities like McDonald’s or Coke stock. They’re not looking to get rich quick; they just want to preserve the money they do have and grow it a bit along the way.
You see this type of strategy in a lot of retirement plans, as the last thing people want is for their retirement savings to disappear because they took too much risk.
Since we Americans like staring at screens and scarfing cheeseburgers, the most conservative stocks are ones like Apple, McDonald’s, and Coke.
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Finance: What are Balanced Funds?37 Views
Finance a la shmoop what are balanced funds? well this is a teeter
and this is a totter and this thing here is the fulcrum and here's you madam [Woman sitting on the fulcrum]
imbalanced funds sitting in the middle a gentle breeze sways you left toward a
little more yield or interest on bond investments and then another breeze
sways you right toward a little more growth or capital appreciation from [woman swaying right]
equities a balanced fund is a type of mutual or index fund which generally
keeps an even ish mix of growth and income for investors who don't want the
volatile sharp rocky mountain peaks and valleys that growth only throws at you [Growth chart with peaks and valleys]
but well they want a bit more excitement than all bonds got it or rather they can
handle a bit more risk in their lives than what a simple bond income fund
would deliver to them you know a whole lot of boring yield balance is almost [Woman balancing]
always good for zen.. oops didn't see that breeze coming
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