Balanced portfolio


As the name suggests, a balanced portfolio has a mix of stable securities that will produce fixed income along with some equity securities for growth. Considered a medium risk, the key factor here is this is a good appraoch when you have a longer time frame — you can make long-term investments. New parents saving for an education for their child may consider this approach for investing. They have time to save or watch their investments work as the child grows up.

Of course, a balanced portfolio isn't only for new parents — it's for anyone who wants some steady growth but is willing to take some risks. The key is that it is a longer-term approach to investing.

A balanced portfolio would typically contain a balance of fixed-income and equity securities (for example, 60% stocks and 40% bonds).