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Balancing in Balanced Funds

Find out how balancing is done in balanced funds & the frequency at which it is retained…

At what frequency is balancing done in balanced mutual funds?
-YM Desai

Most balanced funds have a pre-defined allocation range. Internally, they will have some kind of an assessment that they will be 65-70 per cent or 70-75 per cent into equity. And whenever that allocation changes because of a change in valuation, it is the job of the fund manager to see that the defined allocation is retained. This usually happens on a day-to-day basis, despite the surge or fall in the value of equity investments.



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