Balanced Fund: Assuring Financial Goals

Everyone has certain goals in life which s(he) desires to achieve. Becoming rich and leading a luxurious life is what we all dream of. Now is the time to accomplish such desire and make your future secure. Investments in the mutual fund programme are an effective tool to attain the desired returns. But, we need to opt for such schemes that fulfil all our expectations. The balanced fund can provide you with the same.

Every investor puts his/her money to fulfil some personal objectives. Not all of us are from the same background and do not have similar habits. This is the reason our choices, desires and expectations differ. Some of us want a regular income, some want financial security, while some want long-term growth. The schemes which are provided by the balanced mutual funds offer such benefits that aim to fulfil the desires of varied investors.

What is a Balanced Fund?

The balanced fund, also known as a hybrid fund, is a type of mutual fund which invests some proportion of funds into shares or stocks of the companies while some funds in the bonds and other debt instruments. Accordingly, it provides the dual benefits of regular income and capital appreciation to the investors. Furthermore, it diversifies the funds into various schemes for reducing the market exposure risks. Moreover, the investors who are new in the investment market can start investing in mutual funds using the schemes falling in this category. These funds are helpful for testing the waters before jumping in the investment market.Generally, the best-balanced funds maintain the ratio of around 60:40, i.e., 60% funds are put in the equity schemes while 40% are put into debt instruments. This enables a net balance between income and growth of the investments and manages the fund portfolio in a better way. And accordingly, the investors are freed from rebalancing the portfolios and thus maintain an appropriate assets mix.

To attain the returns on investment, we need to be sure about the proficiency of the plans we have invested in. The schemes falling under the balanced mutual funds have proved their efficiency by being on the top of the best-performing funds’ list. Some of the plans of this class are:

ICICI Prudential Balanced Fund (G)

Canara Robeco Balance (G)

Tata Balanced Fund (G)

Birla Sun Life 95 Fund (G)

SBI Magnum Balanced Fund (G)

DSP BlackRock Balanced Fund (G)

As per the desire and choice, one can opt for the scheme which suits him/her the best. There is a saying that goes, "Extremes are easy; strive for balance". Hence, to attain the investment goals in a convenient manner, you can choose the best-balanced funds for your investment portfolio.

Dishika is well-versed with the ups and downs of the financial market and has published articles on mutual fund and SIP. She is associated with MySIPonline.com, which is an AMFI registered mutual fund company.