Also called hybrid funds with money invested in both stocks and bonds. These Mutual funds are ideal for those people who are looking for a mixture of safety, income, and modest capital appreciation.
Investors can invest around 60% of their assets in stocks and 40% in bonds maintaining the balanced growth with moderate risk.
Balanced funds are good to invest because they are the mixture of equity stocks and bonds providing fixed income reducing the risk for the investors.
The mix of the mutual funds may shift over time or it may be fixed.
Why invest in these Funds:
When we compare balanced fund vs equity fund, the Balanced Funds are safer compared to the equity funds as they protect capital by their investment in debt so you can expect well-balanced fund returns.
These funds invest around 60-80 percent of their assets into equities and the rest investment in debt.
There’s no lock-in period for the investment, investment can be withdrawn any time but if redeemed before certain period an exit load is deducted set by the mutual fund company.
To check the investment required to achieve your goals, you can check through online balanced fund calculator.
Two ways to invest in Mutual Funds:
Few of the good balanced mutual funds are:
- HDFC balanced fund
- Reliance balanced fund.
- Icici balanced fund
- Tata fund