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Balanced/Hybrid

Stocks and bonds typically have low correlations. By combining them, balanced and hybrid funds typically experience less volatility than an all-stock portfolio, and less interest rate sensitivity than an all-bond portfolio. This diversification also may lessen the effect of rising rates.

What are the potential benefits?

  • Less interest rate sensitivity than an all-bond portfolio
  • Dividends may help to offset negative returns during down markets
  • Diversified source of income

What does Federated offer in this category?