Which fund has investments in a mix of stocks?

• A. Balanced Fund
• B. Growth Fund
• C. Index Fund
• D. Bond Fund

Answer: (A)

Having a mix of stocks and other asset classes is what gives a balanced fund its distinctive approach. Balanced funds combine equities for growth with fixed-income securities for income and stability, aiming to smooth returns and reduce risk compared with funds that invest solely in stocks. This blend directly matches the idea of a fund investing in a mix of stocks. In contrast, a growth fund focuses mainly on stock investments to maximize capital appreciation, a bond fund centers on bonds for income, and an index fund tracks a specific market index (which can be stock- or bond-based but isn’t defined by a stock-and-bond mix). So the fund that intentionally includes both stocks and bonds is the balanced fund.