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Glossary Mutual Fund / Term

Balanced Fund

Balanced Fund is a hybrid fund which splits the total invested amount between equity and debt in a pre-determined and fixed proportion. Some of these funds might have a clause to cross the pre-determined limits by a certain margin basis the market dynamics. In some funds, the fund manager invests as per their discretion and the market movements keeping the investment objective in mind.

These funds are a perfect choice for investors who want capital appreciation but only want a limited degree of risk. Mutual Funds and ULIPs both offer balanced funds.

Balanced Mutual Funds usually have at least 65% exposure in equity to have equity taxation. The fixed income portion in Balanced Funds helps investors mitigate the equity related risks.

Permanent link Balanced Fund - Creation date 2020-05-23


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