In a balanced diet, the type of fat that should be limited is saturated fat. Saturated fats, found in animal products and some processed foods, can raise cholesterol levels and increase the risk of heart disease. Instead, individuals should focus on incorporating unsaturated fats, which are found in nuts, seeds, avocados, and fish. These healthier fats can improve cholesterol levels and provide essential fatty acids needed for overall health. Limiting saturated fat while maintaining healthy fats is vital for achieving a balanced, nutritious diet.