Overview about Balanced Mutual funds
Balance mutual funds are one of the best investment options for those investors who do not want to take stock market risks and look for capital projection, but look for investment growth. This investment plan aims for capital projection.
How does this work ?
The mutual funds under this type would invest 60% to 80% of the fund amount in equities and balance in fixed income like government bonds, secured debentures, debt funds etc. The investment in equities provides growth in investment and amount invested in fixed income provide stable returns.
Let us see below scenario. A balanced mutual fund has invested 70% in equities and 30% in fixed income generating 9% returns (Investment amount Rs.10,000 – Split into Rs.7,000 in equities and Rs.3,000 in debt funds)
Scenario-1: Equity markets have fallen to the extent of 3% after the investment has made. Hence the amount invested by MF scheme in equities has fallen from Rs.7,000 to Rs.6,790 (3% loss). The amount invested in debt funds is now Rs.3,270 (with 9% returns). The total investment amount is now Rs.10,060 which has just returned 1%.
Scenario-2: Equity markets have risen to the extent of 10% after the investment has made. Hence the amount invested by MF scheme in equities has fallen from Rs.7,000 to Rs.7,700 (10% increase). The amount invested in debt funds is now Rs.3,270 (with 9% returns). The total investment amount is now Rs.10,970 which earned 9.7% returns
Scenario-3: Equity markets have risen to the extent of 16% after the investment has made. Hence the amount invested by MF scheme in equities has fallen from Rs.7,000 to Rs.8,120 (16% increase). The amount invested in debt funds is now Rs.1 (with 9% returns). The total investment amount is now Rs.10,970 which earned 14% overall returns
What are the top and best performing mutual funds you can look for investment?
However the key lies in choosing the best balanced mutual funds which provide maximum returns. See the below table which are the top 10 balanced mutual funds and the annualized returns in the last 3 years.
|
Crisil Rank |
Mutual Fund Scheme |
AUM |
1yr |
2yr |
3yr |
5yr |
|---|---|---|---|---|---|---|
|
Rank 1 |
HDFC Balanced Fund (G) |
630 |
4% |
6% |
16% |
12% |
|
Rank 1 |
HDFC Prudence Fund (G) |
6,041 |
0% |
2% |
14% |
11% |
|
Rank 2 |
Tata Balanced Fund (G) |
329 |
9% |
5% |
14% |
10% |
|
Rank 2 |
ICICI Pru Balanced Fund (G) |
334 |
4% |
6% |
12% |
6% |
|
Rank 2 |
Can Robeco Balance (G) |
186 |
7% |
4% |
12% |
10% |
|
Rank 2 |
ICICI Pru E & D-Volatility Adv. (G) |
156 |
8% |
7% |
11% |
7% |
|
Rank 3 |
Reliance RSF – Balanced (G) |
571 |
7% |
1% |
11% |
12% |
|
Rank 3 |
Birla Sun Life 95 Fund (G) |
519 |
3% |
2% |
11% |
8% |
|
Rank 3 |
DSP-BR Balanced Fund (G) |
647 |
1% |
0% |
9% |
9% |
|
Rank 3 |
Kotak Balance |
45 |
7% |
2% |
8% |
6% |
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Suresh
Myinvestmentideas.com
Disclaimer: Mutual funds are subject to market risk. Pls read the disclaimer page provided at the top of this page, before you make any investments based on above recommendations.
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