Definition of Blend fund:
An investment that has a combination of different funds to yield a higher return.
Blend funds were developed to offer investors the advantages of value and growth investing. Value stocks and value funds seek to profit from undervalued investments identified based on fundamental characteristics. Growth stocks and growth funds seek to profit from companies with substantial potential for capital growth in the form of earnings and capital gains. Blend funds combine both types of investments in a single portfolio.
A blend fund (or blended fund) is a type of equity mutual fund that includes a mix of both value and growth stocks. These funds offer investors diversification among these popular investment styles in a single portfolio. Blend funds are a particular case of a hybrid fund.
How to use Blend fund in a sentence?
- Blend funds are a category of equity mutual fund that invests in both growth and value stocks.
- Because blend funds come in many configurations, investors should research each potential fund strategy and use a style box for easier categorization.
- The goal of a blend fund is to create a diversified portfolio that takes advantage of the capital gains potential of the growth segment and the dividend income and stability of the value segment.
Meaning of Blend fund & Blend fund Definition