If you have been investing for a while, you may have come across hybrid or balanced funds. These funds have a debt and equity component at a particular ratio. Balanced mutual funds are ideal if your risk-taking appetite is low and you need decent returns. Unlike standard mutual funds, balanced funds have lower risks. So, you can gain debt and equity investment exposure without worries. You’ll get the support of a fund manager to know how to check mutual fund balance and other related details.
Balance Mutual Funds are also called hybrid funds, as they enable you to diversify your portfolio. You can safely invest in equity and debt asset classes while managing risks successfully. Usually, these funds are a combination of stocks and bonds.
Investing in stocks primarily aims to optimise earnings and capital appreciation. You'll invest a fixed amount into the associated acid classes within a specified maximum and minimum limit. So, you set yourself up for excellent returns from both debt and equity.
This fund invests 65% of its corpus in equity-related securities. The rest is invested in debt or money market options.
65% of this fund's corpus goes into debt securities, which include bonds, debentures and treasury bills. According to the market conditions, you can invest 60% in stocks and 40% in debt or vice versa. So, a balanced mutual fund offers great flexibility and convenience.
After understanding what a balanced fund mutual fund is, you can dive into the investment process. The steps are the same as any standard mutual fund investment.
If there are any problems during the process, contact the associated professionals for help. However, always select the investment amount according to your financial condition.
A balanced mutual fund lets you plan your investments strategically by delving into debt and equities. For instance, you can shift your investments to equity if the debt market is too volatile.
Other benefits of investing in balanced funds include the following -
Before finalising a balanced mutual fund, check its past performance and the company offering it. This will give you a brief idea about the expected returns. If you are an inexperienced investor, consult a fund manager for handling these investments. The manager will utilise knowledge and expertise to make smart investment decisions on your behalf. Fi offers a wide range of over 800 direct Mutual Funds (including Balanced Funds) with a user-friendly interface, catering to novice and seasoned investors. These Mutual Fund investments are commission-free and backed by epiFi Wealth, a SEBI-registered investment advisor, ensuring 100% security.
To simplify the investment process, Fi allows you to invest in Mutual Funds on a daily, weekly, or monthly basis using automatic payments or Systematic Investment Plans (SIPs) that can be created with just one screen tap. Additionally, Fi offers complete flexibility with no penalties for missed payments, making it easy to manage your investment in Balanced Mutual Funds — whenever the market fluctuates.
Balanced unit trust funds or balanced mutual funds improve portfolio diversification, reduce risks and help manage finances.
Popular balanced funds include HDFC Balanced Advantage Fund and HDFC Hybrid Equity Fund. These funds can comprise 35% bonds and 65% stock investments.
