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Best Balanced Mutual Funds – Their Ranking in 2019

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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 equitiesMost 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 owww.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 mutual fund portfolio.  

 

*Mutual fund investments are subject to market risks. Please read the scheme information and other related documents carefully before investing.

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