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What is a balanced fund?

Dhirendra Kumar defines balanced funds and says why they are suitable for most investors

Transcript: A balanced fund is almost an equity fund except that it can invest up to 35% of its corpus in fixed income. So, when markets fall, balanced funds fall less. This is comforting for most investors. Most ordinary investors feel happy when markets go up but they get extremely uncomfortable when markets fall sharply in a short period of time. Balanced funds fall relatively less and are tax-efficient. They are thus a steadier counterpart of equity funds.

This article was originally published on September 01, 2017.

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