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By what other name are balanced funds known?

AAlternative funds
BLifecycle funds
CIndex tracking funds
DAsset allocation funds
Answer & Solution
Correct answer: D. Asset allocation funds
1. Balanced funds hold stocks and bonds, and sometimes money market instruments, in one portfolio. 2. They are also known as asset allocation funds. 3. They typically hold a relatively fixed allocation across those categories, though the mix differs from fund to fund. 4. Lifecycle fund is another name for a target date fund, whose allocation deliberately changes over time. 5. Alternative funds pursue non-traditional assets and strategies, so the label does not fit. _Source: US SEC Office of Investor Education and Advocacy, "Mutual Funds and ETFs: A Guide for Investors", section Balanced Funds_
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