Please make me understand the meaning of balanced fund, debt fund and equity fund.
A mutual fund that buys a combination of common stock, preferred stock, bonds, and short-term bonds, to provide both income and capital appreciation while avoiding excessive risk. The purpose of balanced funds (also sometimes called hybrid funds) is to provide investors with a single mutual fund that combines both growth and income objectives, by investing in both stocks (for growth) and bonds (for income). Such diversified holdings ensure that these funds will manage downturns in the stock market without too much of a loss; the flip side, of course, is that balanced funds will usually increase less than an all-stock fund during a bull market.
Debt Fund - a debt fund is a pool fund held by several investors in which the core holdings are fixed income investments The Debt fund (pooled group of investors) may invest in long term or even short term bonds, floating race debt, money market funds, or securitized products... The main objective of a debt fund is the preservatio ...more