Balanced Mutual Funds are funds which have both stocks and bonds

1. www.loanXpress.com
Balanced Mutual
Funds

2. 2www.loanXpress.co
m
Feb 2017
Introduction
 Balanced Mutual Funds, also known as hybrid funds,
own both stocks and bonds
 They earn the ‘balanced’ monitored by keeping
the balance between the two asset classes pretty
steady
 Usually 65% - 80% of fund is invested in equity
securities and the remaining in debt securities
 Returns on these fund are completely depended on
NAV (Net Asset Value) of the fund
 A Balanced Mutual Fund is another option for
intermediate-term investors

3. 3www.loanXpress.co
m
Feb 2017
Features of Balanced Mutual Funds
The length of the term and the premium paid is determine by the sum assured
Balanced funds are treated as equity oriented funds for purposes of income tax, and offer
a better post tax return than combining equity and debt funds in the same proportion
It Is best product mix between Risk and Returns
Sum Assured depends on term of Investment usually 10 times to 15 times of the
annualized funds
The fund manager manages the allocation to equity and debt in a dynamic manner so
that investor gets the desired returns
Rebalancing happens without any tax implication to the investor who would have
otherwise paid tax if he managed the asset allocation himself through different funds
Tax benefit under 80C and 10 (10D) of Income Tax Act of India.

4. 4www.loanXpress.co
m
Feb 2017
 Lower Risk & Higher Returns
 10x to 15x multiple sum assured on maturity
 Managed by Professional Fund Managers and hence saves time and
individual effort
Disadvantages..?
Advantages & Disadvantages
Advantages..?
 Directly linked to Market - Susceptible to market downturns
 Not advisable for Short Term – Can give negative returns in
the
short term
 Returns depend completely on the Financial market
performance ( both Equity & Bond)

5. 5www.loanXpress.co
m
Feb 2017
Top 5 Balanced funds in India for 2016-17
Fund Name
AUM
(in Rs. Crores)
3 year
CAGR
5 year
CAGR
NAV
(in Rs)
Tata Balanced Fund 3135.00 23.60 16.00% 153.60
ICICI Balanced Fund 2404.00 21.80 15.50% 82.80
Birla Sunlife 95 fund 2200.20 20.70 14.10% 518.30
HDFC Balanced Fund 1911.20 21.60 14.60% 96.75
HDFC Prudence fund 11927.60 21.60 13.20% 316.51

6. 6www.loanXpress.co
m
Feb 2017
We would love to assist you
Get in Touch
Corporate Office:
Vermillion Finalytics Private Limited
4D, Siddhivinayak Chambers,
Gandhi Nagar,
Opp MIG Cricket Club,
Bandra (E),
Mumbai – 400 051
Telephone : (022) – 2655 8760
Tollfree : 1800 – 228 - 005
Email : info@LoanXpress.com
Website : www.LoanXpress.com