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Mutual Funds Videos 165 videos

Finance: What is Efficient Markets Theory?
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What is the Efficient Markets Theory? The Efficient Markets Theory says that stocks trade at their fair value all of the time, assuming all informa...

Finance: What is a Fund of Funds?
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What is a Fund of Funds? A fund of funds is a mutual fund strategy that invests in other funds rather than investing in stocks or bonds. The underl...

Finance: What is the Russell Index?
4 Views

The Russell Index is a series of indices that tracks the progress of stocks in a given basket. Aw. We were hoping it tracked adorable Jack Russell...

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Finance: What are Balanced Funds? 37 Views


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Description:

What are Balanced Funds? Balanced funds are a combination of different investments, hence “balanced.” They can be comprised of stocks and bonds as well as money market funds and are set up using the investor’s risk preferences.

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Transcript

00:00

Finance a la shmoop what are balanced funds? well this is a teeter

00:08

and this is a totter and this thing here is the fulcrum and here's you madam [Woman sitting on the fulcrum]

00:12

imbalanced funds sitting in the middle a gentle breeze sways you left toward a

00:18

little more yield or interest on bond investments and then another breeze

00:22

sways you right toward a little more growth or capital appreciation from [woman swaying right]

00:27

equities a balanced fund is a type of mutual or index fund which generally

00:32

keeps an even ish mix of growth and income for investors who don't want the

00:37

volatile sharp rocky mountain peaks and valleys that growth only throws at you [Growth chart with peaks and valleys]

00:42

but well they want a bit more excitement than all bonds got it or rather they can

00:47

handle a bit more risk in their lives than what a simple bond income fund

00:51

would deliver to them you know a whole lot of boring yield balance is almost [Woman balancing]

00:55

always good for zen.. oops didn't see that breeze coming

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