Balanced funds, as their name indicates, are mutual funds in which something is balanced, and that something is basic classes of assets – money market instruments, bonds and stocks. They are good for medium to long-term investments in an investment horizon of 3 years and more, depending on the fluctuation of the value of their investment certificates. Their risk profile changes by the proportion of individual classes of assets in the portfolio of balanced funds. Thanks to a combination of several classes of assets, they are good predominantly as separate lump sum or regular investment, and both conservative and dynamic investor can choose from their selection according to their risk profile. Balanced funds can be managed by various investment strategies. The so-called long-term strategic allocation of assets, i.e. the proportion of individual classes of assets with a small variation, is defined in the Fund Statute of most balanced funds. These types of funds faithfully reflect the development of individual markets, which is predominantly advantageous in the growth period. Some balanced funds are managed by the absolute yield strategy, enabling them to reduce the risk of the portfolio (stocks) down to a minimum if the development on stock markets is unfavourable. These types of funds actively manage risks in the fund portfolio, which minimises possible decreases however it lags slightly behind the market in case there is growth.