Final Fans

If you want it all—growth and income, as well as stocks, bonds, and cash-equivalent investments—these mutual funds contain a mix of these three asset classes. Talk about well rounded! The beauty of balanced funds is that they spread out your risk among all the major types of investments, which can save you time.
One word of caution, though: Many balanced funds consist primarily of large-cap stocks and Treasury bonds—and may not include small-cap or international stocks. Therefore, if you buy a balanced fund, you need to look carefully under the hood; otherwise you may not be as diversified as you think.

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