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While balanced funds are a comparatively conservative investment strategy, they are still not 100% risk-free because bonds will fluctuate if interest rates change. Since bonds demonstrate an inverse relationship with interest rates, an increase in interest rates will cause bond values to fall.
This fund in particular has delivered a 5-year annualized total return of 7.18%, and it sits in the top third among its category peers. Investors who prefer analyzing shorter time frames should look at its 3-year annualized total return of 5.82%, which places it in the top third during this time-frame.
This fund aims to generate income and long term capital growth. It primarily invests in a combination of equity and fixed income securities from anywhere in the world.
Balanced funds can generate regular income for investors due to the debt component, which earns an interest. The equity portion, meanwhile, offers the potential for capital appreciation. This also maintains a balance between risk and return, making it a good choice for retirees.
Instrument Name Fidelity Global Balanced Portfolio Series B - Is (FID2204.CF) CADFUNDS. Price movement based on the high, low and last over the given period.
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Overall Rating Morningstar has awarded this fund 5 stars based on its risk-adjusted performance compared to the 686 funds within its Morningstar Category.
Overall, Fidelity Balanced Fund ( FBALX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, average downside risk, and lower fees, this fund looks like a good potential choice for investors right now.
A balanced portfolio targets an asset allocation of 45%in defensive assets, and 55% in growth assets: This portfolio is recommended for investors who understand and are moderately comfortable with investment risk, and/or require moderate returns to meet their objectives. Forecast long term return: 4 - 5% p.a.

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