Balanced Fund

Balanced /Hybrid Funds

Hybrid Schemes or balanced schemes bridge the gap between equity and debt schemes. This category is characterized by a portfolio that is made up of a mix of equity stocks and bonds and will suit investors looking for debt plus returns with higher levels of risk than fixed income schemes.Nowaday , many Mutual Funds have started offering solutions which invest in all asset classes namely : Equity ,Debt & Gold

The aim of balanced funds is to provide both growth and regular income as such schemes invest both in equities and fixed income securities in the proportion indicated in their offer documents. These are appropriate for investors looking for moderate growth. They generally invest 40-60% in equity and debt instruments. These funds are also affected because of fluctuations in share prices in the stock markets. However, NAVs of such funds are likely to be less volatile compared to pure equity funds.

Asset allocation is the key to investing success as it helps you reduce the volatility of returns. By investing in equity for capital appreciation and debt for stable returns, you can reduce instability of returns by increasing / decreasing exposure to various markets, based on in-depth research and analysis.

Key Benefits

  • Suitable for an investment horizon of 3 years or more
  • Provides the twin benefits of growth from equity markets and steady income from debt markets.
  • Lower volatility of returns and lower risk through diversification.

This product is suitable for investors who are seeking

  • Long term wealth creation solution
  • A balanced fund aiming for long term capital appreciation and current income by investing in equity as well as fixed income securities

* Investors should consult their financial advisers if in doubt about whether the product is suitable for them