What is the category of debt portion in equity-oriented balanced funds like HDFC balanced or HDFC Prudence and others? I get an impression that all of them are equivalent to dynamic bond funds. Am I right? Are there any funds that offer some specialization? For example, the debt portion is run as short-term fund. Are there any funds that I can opt for if I want the interest rate risk on my debt portion to be minimal?
- Kalyan
Equity-oriented balanced schemes invest at least 65 per cent in equity and the rest in debt. Though there are balanced funds that focus on large cap stocks or mid and small cap stocks, there are no funds that offer any specialisation when it comes to the debt part. The debt part is typically managed to offer a cushion in a market downturn.
This article was originally published on August 11, 2015.
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