If your business is looking for a unique investment option, consider balanced funds. Balanced funds are made up of stocks and bonds (and sometimes a money market investment). The balanced funds trader combines a mix of stocks and bonds aimed at either moderate or conservative risk and reward.

Balanced funds investing is for investors who want a blend of income and safety, making balanced mutual funds a good option for your business investment. A balanced funds broker is guided by established parameters, so your company can pick the level of growth and income you want in your balanced fund.

As your company considers whether to invest in balanced funds, keep these things in mind.

1. Because holdings are diversified, balanced funds investments handle downturns in the stock market better than most other options.

2. Balanced funds brokerage houses publish both the performance of funds and the fund managers' names and histories.

3. There are tools for tracking the mix of stocks, bonds and other investments in balanced funds.

Action Steps
The best contacts and resources to help you get it done

Examine the strengths and weaknesses of balanced funds investing

A key strength of balanced funds is the tendency to manage downturns in the stock market rather well. However they usually experience smaller increases in a bull market. Consider both of these facts when planning your company's investment expectations.

I recommend: Find clear, concise definitions and explanations for balanced funds at InvestorWords.com. Register at MutualsAdvisor.com to receive investment information about all types of mutual funds, including balanced funds.

Select a balanced funds brokerage and broker for your investment

You can research the composition of balanced funds, their performance history and information about the manager. Look for a fund with the right mix of growth and income for your investment plans. Regularly analyze results and discuss with the fund manager to determine when change is advised.

I recommend: Check the T. Rowe Price website for performance data for various balanced funds they manage. Fidelity provides similar information at its website or in a printed newsletter.

Invest in tracking tools to monitor your balanced funds performance

Online and software tools allow you to monitor the performance of your company's balanced funds. Some tools even provide sample investment recommendations based on similar performance vectors in the past. Consider assigning an employee to monitor and report results on a regular basis.

I recommend: At TD Ameritrade you can use StrategyDesk to analyze your business's fund potential and other tools to track your investment's performance. KnowledgeStorm is a clearinghouse for mutual fund software. You can find tracking programs with varying levels of sophistication and features, such as charting.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Balanced mutual fund managers are usually available for consultation. Before making a large business investment, consider discussing you strategy and plans with one or more managers.