Markets & Economy

Balanced Opportunity Fund Diversification at Its Core

Balanced Opportunity Fund Diversification at Its Core

With a diversified mix of stock  and bond investments, Dreyfus Balanced Opportunity Fund is designed to be at the heart of a  solid asset allocation strategy. It’s actively managed to seek high total return, in line with its goal of preserving principal through a combination of capital appreciation and current income.

To see the fund’s potential, first consider its key objectives:

In pursuit of a high relative risk-adjusted return on the fund’s equity investments, the managers create a broadly diversified equity portfolio. This includes a blend of growth and value stocks with selections made through extensive quantitative and fundamental research.

The fixed-income portion of the portfolio is strategically diversified, with the managers typically allocating 25% to 50% of assets to fixed-income securities. This can include corporate bonds, debentures, notes, mortgage-related securities and money market instruments — and there are no limits on maturity or duration.

As part of its active management, and to ensure its strategic objectives, the fund has appointed an asset allocation manager who allocates assets among the equity and fixed-income portfolio managers. The asset allocation manager assesses a range of key factors continually, including the relative return and risk of each asset class, general economic conditions, anticipated future changes in interest rates and the overall equity outlook.

The Power of a Disciplined and Diversified Approach

Now may be a good time to consider Dreyfus Balanced Opportunity Fund and see how it can possibly serve as a core holding in your diversified portfolio.

Contact a Dreyfus representative at 1-800-443-9794 to learn more.

This article is from the Letter From the Lion Fall 2016 edition.

Investors should consider the investment objectives, risks, charges and expenses of any mutual fund carefully before investing. Call 1-800-443-9794 to obtain a prospectus that contains this and other information about a fund. Read it carefully before investing.

Asset allocation and diversification do not ensure a profit or protect against loss in declining markets.

Equity funds are generally subject to market, market sector, market liquidity, issuer and investment style risks, among other factors, to varying degrees.

Bond funds are generally subject to interest rate, credit, liquidity, call and market risks, to varying degrees, all of which are more fully described in the fund’s prospectus. Generally, all other factors being equal, bond prices are inversely related to interest rate changes, and rate increases can cause price declines.

BNY Mellon Investment Management is one of the world’s leading investment management organizations and one of the top U.S. wealth managers, encompassing BNY Mellon’s affiliated investment management firms, wealth management services and global distribution companies. BNY Mellon is the corporate brand of The Bank of New York Mellon Corporation. The Dreyfus Corporation is the primary mutual fund business of BNY Mellon. MBSC Securities Corporation, a registered broker-dealer, member of FINRA and subsidiary of Dreyfus, is the distributor of Dreyfus mutual funds.