UNDERSTANDING THE CONCEPT
A hybrid or balanced provides a one-stop investment mix of equity and debt instruments. It aims to ensure a return and balance the risk-reward. In India, the best-balanced funds are thoroughly invested 50%-70% of their portfolio in stocks, the remains in bonds, and other debt instruments. Eventually, as a low-risk investment, they are good to go for first-time investors (they don’t want to take any risk, but curious for capital appreciation).
ADVANTAGES OF BALANCED MUTUAL FUNDS
They offer diversification in the form of a single-docket of a mutual fund. The investor can select the funds from a bouquet as offered by Gulaq (originally spelled as gullak). If not individual, a fund manager can do this job; a strategical combination of equity and debt components makes the funds less-vulnerable to market-volatility. Debt components shield investment from volatility, whilst equity components can generate capital appreciation.
TYPES OF BALANCED FUNDS
| Equity-Oriented Balanced Funds | Debt-Oriented Balanced Funds |
| In here, the investor invests the majority of the money into equity derivatives and equities. Most of the capital here is invested in several debt instruments and money market. In equity oriented balanced funds, the capital appreciation is aggressive; also, the risk associated is low, thus, making them attractive options amongst others. | Debt-oriented balanced funds are considered as an ideal investment for conservative investors. The large part of the money is put into money and debt market instruments. Constant long-term returns and low risk can be taken in this fund. |
HOW THEY ARE RANKED?
Look at the table below:
| Balanced Fund Name | 3 Years | 5 Years |
| HDFC Balanced Fund | 10.40% | 16.07% |
| L&T Hybrid Equity Fund | 8.76% | 15.79% |
| ICICI Prudential Equity & Debt Fund | 11.22% | 15.83% |
| SBI Equity Hybrid Fund | 9.28% | 14.98% |
Source: cleartax.in
BETTER RISK-BASED RETURNS
Here:
| Fund Category | 5-year rolling return | Risk-based Standard deviation |
| Balanced Funds | 13.20% | 2.9 |
| Large Cap Funds | 12.90% | 3.47 |
| Mid cap and Large cap funds | 13.96% | 3.82 |
| Diversified Funds | 14.91% | 3.96 |
Source: cleartax.in
HOW TO INVEST IN BALANCED FUNDS via GULAQ (originally spelled as gullak)?
You can invest in best balanced funds in hassle-free and paperless manner in Gulaq (originally spelled as gullak). Following are the steps:
Step 1: Sign-up for an account on www.gulaq.com
Step 2: Enter your details as required
Step 3: Get your KYC done in less than 60 seconds and for FREE
Step 4: Invest from the list of balanced funds. Alas! You are good to go.
TOP 5 BALANCED FUNDS
Representing as below:
| Fund Name | 1 Year | 3 Year | 5 Year |
| Tata Retirement Savings Fund | 14.95 | 11.68 | 20.87 |
| HDFC Balanced Fund | 11.21 | 10.51 | 19.42 |
| L&T India Prudence Fund | 10.71 | 10.19 | 19.2 |
| Principal Balanced Fund | 17.97 | 13.57 | 18.35 |
| ICICI Prudential Balanced Fund | 8.93 | 10.55 | 18.31 |
Source: cleartax.in
Specific factors and investment needs must be considered whilst designing a mutual fund portfolio.
*Mutual fund investments are subject to market risks. Please read the scheme information and other related documents carefully before investing.