As a moderately aggressive investor, you want the balance of capital growth and protection. You want to experience the “best of both worlds”. You prefer the combined benefits of bonds and stocks as a way to reach your goals while building your financial nest for the long-term.
This type of fund is a hybrid fund, a mix of a stock fund, bond fund, or money market fund in a single portfolio. Usually, there are set gauges on how much a balanced fund should be invested in stocks and bonds. The recommended time horizon for balanced funds is around 3 to 5 years.