What are balanced/hybrid funds? What are the types? Should i invest in balanced funds?
AskedBalanced funds are funds that invest some proportion of their total corpus in equities and the remaining in debt securities. They provide a diversified portfolio of debt and equity and thus help in minimizing risk exposure of the investor.
Advantages of investing in Balanced Funds:
Disadvantages and risks of investing in Balanced Funds:
Balanced funds are usually better suited for customers looking to invest money for 2-3 years. Before selecting the balanced fund that you want to invest in, it is advisable to compare the performance of that fund with its benchmark, which is usually Crisil Balanced Fund Index.
You can also check out Groww's ICICI Prudential Balanced - Growth Fund and HDFC Balanced Fund - Growth as suitable investment avenues. Both these funds have consistently outperformed their respective benchmarks and are top performing portfolios at Groww. You can evaluate other available options here.
Hope this answers your question!
Balanced funds are investment instrument, where an asset management company invest the money gather into both debt and equity. These are diversified mutual funds having perfect balance between risk and returns on investment, and are most popular mutual funds these days.
These are broadly of two types:
Characteristics of balanced funds:
So, balanced funds are good for average investors looking to invest in equities. A lot of people follow stock markets and wish to invest in the shares offered by various companies, but they fear that they don’t have enough knowledge or don’t have sufficient time to keep track on and follow the latest buzz about the dynamic market. Balance fund is the perfect solution for them as investing directly in equity market is a risk, not everyone willing to take.
Example of popular balance funds are:
Happy Investing!
A balanced fund is a fund which combines a stock component, a bond component and sometimes even a money market component into a single portfolio. These are also known as hybrid funds. These are preferred by investors looking for a mixture of safety, income and modest capital appreciation.
So balanced funds consists of two components:
There are two types of balanced funds:
2. Debt Oriented
To consider investments, lets look at the advantages of these funds
So ti summarise, balanced funds are funds which invest in a mix of equity and debt. These funds are good for investors who do not like to take much risk.
Balanced funds are mutual funds that invest that invest in various financial instruments including bonds, stocks, debt securities, etc. These funds are preferred by investors who have a low risk appetite.
There are two types of balanced funds:
Advantages of balanced funds:
Balanced funds are those funds in which the capital of the investor is diversified across different financial instruments such as stocks,bonds,debt securities, etc to limit the risks. These funds are also known as hybrid funds.
Types of balanced funds:
Equity oriented: When major part of the capital is invested in the equity market and the rest in debt funds, these funds are called equity oriented balanced funds. These portfolios of these funds comprise of at least 65 % of the equity funds and the rest of the funds are invested in the debt funds to minimize the risk.
Debt oriented: When major part of the capital is invested in the debt securities and the rest in equity market, these funds are called debt oriented balanced funds.
Should I invest in balanced funds?
Top performing balanced funds: