________ are mutual funds that vary the proportions of funds invested in particular market sectors according to the fund manager's forecast of the performance of that market sector.

Question

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Asset allocation funds vary the proportions of funds invested in particular market sectors according to the fund manager's forecast of the performance of that market sector. This allows for a diversified portfolio and can potentially maximize returns based on market conditions. Balanced funds have a predetermined asset allocation and do not vary based on market trends, while index funds track a particular market index and income funds focus on generating income through dividends or interest.

________ Are Mutual Funds That Vary the Proportions of Funds