A balanced fund is a hybrid investment that allocates 65-75% in equity and 25-35% in debt, aiming to create long-term wealth while offering stability and less volatility compared to pure equity funds. It is suitable for first-time investors or those with a low risk appetite, and it provides tax benefits as it is considered equity-oriented for taxation purposes. The document includes examples of suggested schemes with their performance metrics and SIP returns.

1. Balanced Funds
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2. What is Balanced Fund?
 Balanced fund is a type of hybrid plan. It invests in a mix of
both equity and debt and has a equal role to play in
creating long term wealth.
 This type of fund typically invest 65-75% of their portfolio
in equity and the balance 25-35% in debt.
 Equity component offers potential to grow capital by
investing in stocks while Debt component provides stability
through fixed interest which makes the fund less volatile.
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3. Features
 They give us best of both the worlds- Equity portion
gives opportunity to participate in the equity markets
and Debt portion generates stable interest income.
 Less volatile as compared to pure-equity funds
 Frequent rebalancing of its portfolio to maintain the
equity and debt allocation.
 Asset allocation
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4. Who should invest?
 First time equity mutual funds investor.
 Investor having low risk appetite.
 Those who are less likely to adhere to asset
allocation.
 Investor’s not looking to invest in different funds.
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5. Taxation
 Balanced funds invest more than 65% in equity
and hence it is treated as equity-oriented fund
from taxation purpose.
 Dividend income is tax free.
 Capital gains after holding the fund for more than
one year are long term capital gains and hence tax
free.
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6. Suggested Schemes
Returns are as on 20 July 2015
Scheme Name NAV (Rs)
Annualized CAGR
AUM
(Rs. Cr.)
Asset
Allocation
1 Year 3 Years 5 Years Equity Debt
SBI Magnum
Balanced Fund
97.37 24.10 26.02 14.27 2,049 64.99 25.82
Tata Balanced Fund 174.16 28.70 25.72 16.95 3,733 73.05 22.60
ICICI Pru Balanced
Fund
93.92 19.42 24.57 16.95 2,150 66.92 22.37
HDFC Balanced Fund 109.77 20.50 23.09 16.29 4,120 67.33 24.68
Crisil Balanced Fund 12.25 15.09 9.56
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7. SIP Returns
SIP returns on monthly investment of Rs. 10,000/-
Returns are as on 8 June 2015
Returns are as on 20 July 2015
Scheme Name
1 Year 3 Year 5 Year
Rs. 120,000 Rs. 360,000 Rs. 600,000
Present
value(Rs)
XIRR(%)
Present
value(Rs)
XIRR(%)
Present
value(Rs)
XIRR(%)
HDFC Balanced Fund 126,694 12.53 525,771 27.75 1,000,140 21.22
ICICI Pru Balanced
Fund
126,362 11.90 512,099 25.71 999,408 21.19
SBI Magnum Balanced
Fund
128,843 16.66 525,893 27.77 1,011,305 21.69
Tata Balanced Fund 130,764 20.40 541,902 30.12 1,050,127 23.30
Crisil Balanced Fund
Index
124,174 7.73 445,513 15.17 815,976 12.65
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8. Contact us…
For any queries, please contact us on the below
details:
Email: mfcustomercare@ventura1.com
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