Balanced Mutual Funds: Types, Advantages & Tax Implications

What Is the Meaning of Balanced Mutual Funds?

Types of Balanced Mutual Funds

 

A balanced fund has the following types-

Types of Balanced Mutual Funds

Details

Equity-Based Balanced Fund

This hybrid fund invests 65% of its corpus in equity and equity-oriented securities. The remaining portion is invested in debt instruments.

Debt-Based Balanced Fund

This hybrid fund invests 65% of its corpus in debt securities. The debt security of this scheme comprises fixed-income instruments, such as debentures, treasury bills, bonds, government securities, etc.

How Do Balanced Mutual Funds Work?

Benefits of Balanced Mutual Funds

What Are the Returns for a Balanced Fund?

 

To gain a fundamental idea of their returns, the table below highlights the best balanced funds in 2021 and their past returns. Here, take a look:

[1] [2]

Mutual Fund

3-Year Returns

5-Year Returns

DSP Equity & Bond Fund

23.82%

15.22%

Kotak Equity Hybrid Fund

23.24%

15.03

Axis Equity Hybrid Fund

22.31%

NA

ICICI Prudential Equity & Debt Fund

22.47%

16.95%

Mirae Asset Hybrid-Equity Fund

21.43%

16.89%

*data as on 22 October 2021

Who Should Invest in Balanced Funds?

How to Invest in a Balanced Fund?

Things to Consider When Investing in a Balanced Fund

Frequently Asked Questions