Balanced mutual funds invest in both stocks and bonds, typically holding 65-80% in equities and the remaining in debt. They provide lower risk than pure equity funds while still targeting higher returns. Key advantages include tax benefits, professional fund management, and rebalancing without tax implications. However, balanced funds also directly depend on market performance and are not suitable for short-term goals due to potential negative returns. The top 5 Indian balanced funds for 2016-17 are listed based on assets under management and compound annual growth rates for 3 and 5 years.

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Balanced Mutual
Funds

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Introduction
 Balanced Mutual Funds, also known as hybrid funds,
own both stocks and bonds
 They earn the ‘balanced’ monitored by keeping
the balance between the two asset classes pretty
steady
 Usually 65% - 80% of fund is invested in equity
securities and the remaining in debt securities
 Returns on these fund are completely depended on
NAV (Net Asset Value) of the fund
 A Balanced Mutual Fund is another option for
intermediate-term investors

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Features of Balanced Mutual Funds
The length of the term and the premium paid is determine by the sum assured
Balanced funds are treated as equity oriented funds for purposes of income tax, and offer
a better post tax return than combining equity and debt funds in the same proportion
It Is best product mix between Risk and Returns
Sum Assured depends on term of Investment usually 10 times to 15 times of the
annualized funds
The fund manager manages the allocation to equity and debt in a dynamic manner so
that investor gets the desired returns
Rebalancing happens without any tax implication to the investor who would have
otherwise paid tax if he managed the asset allocation himself through different funds
Tax benefit under 80C and 10 (10D) of Income Tax Act of India.

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 Lower Risk & Higher Returns
 10x to 15x multiple sum assured on maturity
 Managed by Professional Fund Managers and hence saves time and
individual effort
Disadvantages..?
Advantages & Disadvantages
Advantages..?
 Directly linked to Market - Susceptible to market downturns
 Not advisable for Short Term – Can give negative returns in
the
short term
 Returns depend completely on the Financial market
performance ( both Equity & Bond)

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Top 5 Balanced funds in India for 2016-17
Fund Name
AUM
(in Rs. Crores)
3 year
CAGR
5 year
CAGR
NAV
(in Rs)
Tata Balanced Fund 3135.00 23.60 16.00% 153.60
ICICI Balanced Fund 2404.00 21.80 15.50% 82.80
Birla Sunlife 95 fund 2200.20 20.70 14.10% 518.30
HDFC Balanced Fund 1911.20 21.60 14.60% 96.75
HDFC Prudence fund 11927.60 21.60 13.20% 316.51

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