Mutual funds that hold both equities and fixed-income securities in relatively stable proportions are called ________.

Question

Quizplus · Accepted Answer

Balanced funds hold a mix of equities and fixed-income securities in relatively stable proportions, making them a well-diversified investment option for those seeking both growth and income. Income funds (A) focus primarily on fixed-income securities, while asset allocation funds (C) actively shift their allocation between equities, fixed-income, and other asset classes based on market conditions. Index funds (D) passively track a specific market index and typically only hold equities.

Mutual Funds That Hold Both Equities and Fixed-Income Securities in Relatively