Want an Alternative? Look at Balanced.
September 28th, 2010
An alternative to traditional bond and fixed income investments is not dividend funds. Dividend funds are 100 percent equity based and therefore increase an investor’s equity exposure to a huge degree. A better alternative are Balanced Funds which at least maintain some degree of asset mix. This means that the funds are not 100% fixed income or 100% equities. They are a mix of both. More moderate balanced funds will have a heavier equity weighting than conservative balanced funds, so there is really an option for both types of investors. Essentially, both offer at least some degree of risk mitigation because both asset classes are taken into consideration.
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