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?

Investors should carefully consider the fund's investment objectives, risks, charges and expenses before investing. To obtain a summary prospectus or prospectus containing this and other information, contact us or view the prospectus provided on this website. Please carefully read the summary prospectus or prospectus before investing.
Past performance is no guarantee of future results.
Mutual funds are subject to risks and fluctuate in value.
Diversification does not assure a profit nor protect against loss.
Bond prices are sensitive to changes in interest rates, and a rise in interest rates can cause a decline in their prices.
There are no guarantees that dividend-paying stocks will continue to pay dividends.
Federated Securities Corp., Distributor
Copyright © 2015 Federated Investors, Inc.

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