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Vanguard balanced funds

87% of our low-cost balanced funds performed better than their peer-group averages over the past 10 years.*

Get a mix of stocks and bonds in one fund

Combine the potential for income and growth

Balanced mutual funds invest in both bonds, which focus primarily on income, and stocks, which aim for investment growth.

Add stability to your portfolio

The bond portion of the fund helps offset the risks associated with the stock portion—providing you with a "balanced" investment.

Automatically maintain your asset mix

You never have to rebalance a balanced fund—it's done for you automatically. Some funds maintain a set asset mix, while others grow more conservative over time.

Spread out your exposure to risk

By potentially holding hundreds—sometimes thousands—of bonds and stocks in a single balanced fund, you get more diversification than you would buying individual bonds and stocks.

How to choose a balanced fund

Picking a Vanguard balanced fund generally depends on whether you're investing for a specific goal, like retirement, or you have another goal in mind.

Target Retirement Funds

If you're investing for retirement, you can get a complete portfolio in a single fund with a Vanguard Target Retirement Fund. Simply choose a fund based on the date you plan to retire or your current age, and the fund will gradually grow more conservative the closer you get to retirement.

LifeStrategy Funds

If you'd prefer a fund that maintains a set asset mix, a LifeStrategy® Fund can help you reach other financial goals.

Managed Payout Fund

If you're looking to generate income in retirement, Vanguard Managed Payout Fund** might be appropriate for you.

Traditional balanced funds—index and actively managed

If you'd like a set asset allocation based on the level of risk you're comfortable with, choose from a variety of traditional index or actively managed balanced funds. Many people start with a core portfolio of index funds and then add actively managed funds for certain segments.

Index mutual funds & ETFs

You have a chance to keep pace with market returns because index funds try to mirror certain market segments. But not all index funds are created equal.

Or you can try to beat market returns with investments hand-picked by professional money managers. You may be surprised by our active funds' performance.

Want to see a side-by-side comparison of the 2 types of funds?

REFERENCE CONTENT

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Bond

A bond represents a loan made to a corporation or government in exchange for regular payments. The bond issuer agrees to pay back the loan by a specific date.

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Rebalancing

Rebalancing involves periodically buying and selling the stocks, bonds, cash, or other investments in your portfolio to maintain your original or desired mix of those assets.

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Stock

Usually refers to common stock, which is an investment that represents part ownership in a corporation. Each share of stock is a proportional stake in the corporation's assets and profits.

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Asset mix

The way an investment portfolio is divided among the various asset classes of stocks, bonds, and short-term reserves. Also called "asset allocation."

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Diversification

The strategy of investing in multiple asset classes and among many securities in an attempt to lower overall investment risk.