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.
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
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.
We started the indexing revolution
We introduced the first index funds for individual investors, and we've been the voice of indexing ever since.
Vanguard is designed to be different: our funds own our company, and investors like you own our funds. This means that as new economies of scale help us lower costs, those benefits are passed directly to you.
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LEARN ABOUT OTHER FUND TYPES
NEED SOME GUIDANCE?
Balanced mutual funds invest in stocks, bonds, and sometimes cash or other investments—all in a single fund.
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.