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In: Finance

An Exchange Traded fund with an objective of both growth and income is a(n) An open-end...

An Exchange Traded fund with an objective of both growth and income is a(n)

An open-end investment company

Value Fund

Balanced Fund

Solutions

Expert Solution

Since balanced funds include both stocks and bonds, the diversification is an advantage for beginning investors. "

it provide both growth and income strategy

balanced funds help you to ride the equity wave while still maintaining a low-risk profile. They invest the fund’s assets in equity shares as well as debt instruments in a specific ratio according to the investment mandate of the fund. The main objective behind such asset allocation is to enjoy the benefit of diversification. Instead of risking all your money in equity, the balanced fund helps you invest prudently with lower risk.

A balanced fund can be equity-oriented or debt-oriented. An equity-oriented balanced fund invests at least 65% of its assets in equities. The rest of the fund’s corpus is spent primarily in debt, or at times some portion of it is held in cash. On the contrary, a debt-oriented balanced fund invests at least 65% of its assets in debt and money market instruments. The rest of the fund’s corpus is invested primarily in equities.

this provide you both stable growth and income


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