Understanding Balanced Funds
Balanced funds invest in a combination of stocks & bonds to achieve long-term growth & stability…
By Research Desk | May 10, 2011
What are balanced funds and which 5-star rated balanced funds are available in market?
— Manas R Nayak
A mutual fund that has an investment objective of both long-term growth and income, through investment in stocks and bonds is a balanced fund. Over the years, our experience indicates that the equity-debt proportion varies in these funds and the category has evolved to accommodate three types of funds. We have mentioned the categories below with suggested funds.
• Equity-oriented hybrid funds with average equity exposure greater than 60 per cent over the last one year.
? HDFC Balanced
? HDFC Prudence
• Debt-oriented aggressive hybrid funds with average equity exposure between 25-60 per cent over the last one year.
? BSL Asset Allocation Moderate
• Debt-oriented conservative hybrid funds with equity exposure less than 25 per cent over the last one year.
? BSL MIP II
? Reliance MIP