Blend Fund Investing for Diversification

By Stock Research Pro • December 4th, 2009

A blend fund or “hybrid fund” is a type of mutual fund with multiple types of assets, including stocks, bonds, money market and other types of securities. While the goal of a blend fund is in diversifying the portfolio for investors and offering greater stability than other types of funds, the composition can vary greatly among blend funds, adding an element of unpredictability. Blend funds are usually seen as less risky than equity funds and more risky than bond and money market mutual funds.

It is important to note that there really are no restrictions regarding the type of assets a blend fund may include or restrictions as to the asset mix. A more aggressive blend fund, for example, may be comprised almost entirely of stocks and contain few bonds or other types of securities to balance out the portfolio.


The above information is educational and should not be interpreted as financial advice. For advice that is specific to your circumstances, you should consult a financial or tax advisor.

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