Blend Fund

  

A mutual fund that invests mostly in stocks, with a nice blend of value and growth stocks (shaken, not stirred).

When you invest in a value stock, you’re hoping that the stock is a diamond in the rough...a stock that’s undervalued based on how well the company is doing. When you invest in growth stocks, you’re betting that growing companies will...keep growing, and that you can ride their coattails to the big leagues.

A blend fund aims to be a balance of both types of stocks, giving investors the best of both worlds. If you don’t like putting all your eggs in either the growth or the value baskets, then put them in both, with a nice blend fund.

Related or Semi-related Video

Finance: What is a Commingled Fund?7 Views

00:00

Finance allah shmoop What is a co mingled fund What

00:07

is it Well it's A bunch of assets which used

00:10

to be single having come to the finance party stag

00:14

now being put together in one large tinder financial group

00:18

Well for that finance party the host had to make

00:20

the requisite ice sculpture Of course if that sculpture was

00:24

done to entertain on ly one set of assets well

00:27

it's relative cost was probably aye But if it covered

00:30

one hundred different accounts all invited to the party to

00:34

ogallala the great evolved wonder Well then the cost of

00:38

that ice sculpture per visitor is a sum one hundredth

00:42

of what it would have been Otherwise we'll co mingled

00:45

Funds exist typically when a family is successful and disparate

00:49

or separated they don't really talk to each other a

00:52

whole lot Joe over here made his money from a

00:55

shoe factory He sold brother bob over here Made his

00:59

money from his special head shine serum And sister suzy

01:04

over here made her money from her plastic surgery clinic

01:08

Or uh or what That was but well here's The

01:10

breakdown By combining their assets they sort of become a

01:14

kind of hybrid mutual funds like a family mutual fund

01:18

only they don't have to suffer all the regulatory filings

01:21

of being a mutual fund that hire their own professional

01:25

manager to run the co mingled assets think retired money

01:28

manager or someone in the broker dealer world who pretends

01:32

they know what they espouse or market or you know

01:35

they're shizzle in co mingled funds the family khun draw

01:38

margin against those funds like borrow against their own money

01:42

for really cheap prices Sigan sell stocks short which you

01:45

can't do in a mutual fund I'ii betting they'll go

01:47

down just like margin you can do in a mutual

01:50

fund and they could buy and sell stock options and

01:52

bond options in their funds and a bunch of other

01:55

freedoms they have Well that just buying a vanilla mutual

01:58

fund would not have given them so Wow with all

02:01

that freedom what can't co mingled funds d'oh Well sure

02:04

won't protect you from frostbite if that ice sculpture you

02:07

too thirsty just a heads up co mingled funds they're 00:02:11.57 --> [endTime] fun home

Up Next

Finance: What are Balanced Funds?
37 Views

What are Balanced Funds? Balanced funds are a combination of different investments, hence “balanced.” They can be comprised of stocks and bonds...

Finance: What is Capital Appreciation (Mutual Funds)?
10411 Views

What is Capital Appreciation (Mutual Funds)? Capital Appreciation is the increase in the market value of an investment asset, meaning it can be sol...

Finance: What is a Diversified Mutual Fund?
20 Views

What is Diversified Mutual Fund? Diversified mutual fund allow individual investors to obtain the benefits of risk mitigation through diversificati...

Finance: What is a Country Basket (Index Fund)?
30 Views

What is a Country Basket (Index Fund)? Investing internationally can be a challenge, as foreign exchange, different accounting rules, time zones an...

Find other enlightening terms in Shmoop Finance Genius Bar(f)