Mutual funds that stress preservation of capital and current income,but also seek some capital appreciation,are called balanced funds.

Question

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This statement is true. Balanced funds are designed to provide investors with a mix of both equity and fixed-income securities in order to achieve moderate growth with some potential for income. They typically hold a mix of stocks, bonds, and cash or other fixed-income assets in order to achieve a balance between capital preservation and appreciation, as well as current income.

Mutual Funds That Stress Preservation of Capital and Current Income,but