Blend Fund

A mutual fund composed of various asset classes (such as stocks, bonds and money market securities), allowing investors to diversify their holdings by owning just a single fund.  Also called "hybrid funds".

The risk of blend funds is somewhere between that of growth funds and value funds. Thus, by applying both of these fund strategies, a blend fund might, for instance, invest in both high-growth Internet stocks (like growth funds) and cheaply priced automotive companies (like value funds). As such, blend funds are difficult to classify in terms of risks, and their performance can vary considerably. However, blend funds are usually less risky than stock mutual funds and somewhat more risky than bond funds or money market mutual funds.