What characterizes a Balanced UITF?

A Balanced UITF is characterized by a mix of equities and fixed income investments. This fund type aims to provide both growth potential and income generation by diversifying its assets. The equity portion allows for capital appreciation, while the fixed income component contributes stability and regular income, striking a balance between risk and return. This approach caters to investors seeking a combination of growth and safety, suitable for those with moderate risk tolerance.

The other options are distinct investment strategies. Investing solely in fixed income would limit exposure to growth opportunities found in equities. Focusing solely on real estate properties would not adhere to the diversification principle of a Balanced UITF, as it would concentrate investment in one asset class. Lastly, an investment focus on commodities would fall outside the scope of a balanced approach, which aims to mix different asset classes rather than concentrating on one specific type. Therefore, the correct answer accurately captures the essence of what defines a Balanced UITF.