We all would like to maintain a balance between professional and personal life . Both are equally important to lead a successful, happy and healthier life. All doctors suggest us to eat a healthy balanced diet.
Investing in Balanced Mutual Funds is not much different. Balanced funds are also known as Hybrid Mutual Funds. In this post let us understand more about types of balanced funds and investment returns from these funds (especially equity oriented balanced funds).
What are Balanced (or) Hybrid Mutual Funds?
Mutual funds are broadly classified as either Equity or Debt,based on where the funds are invested.
What are different types of Balanced Funds?
Balanced mutual funds can be Equity oriented or Debt oriented hybrid plans.
If the average equity exposure of a balanced fund is more than 60% and the remaining 40% is in debt products then it is treated as a Balanced Fund – Equity oriented. This means major portion of the fund’s assets are invested in equity.
If the average debt exposure is around 60% and equity is 40% then these funds are treated as Balanced funds – Debt oriented. (These proportions can vary among different balanced funds).
Top performing Equity Oriented Balanced Funds
Systematic Investment Plans (SIPs) Returns of Balanced Equity Oriented Funds
The above table gives us idea about the SIP returns. I have assumed the monthly SIP amount as Rs 1,000.
Again, HDFC’s Children Gift Fund (Inv plan) tops the table with annualized returns of around 22% in the last 5 years. One more observation we can make on some of the very old funds. Example – HDFC’ s Prudence fund which was launched way back in 1993. This fund has generated SIP returns of around 23.18% in the last 15 years. The same fund tops the list in 10 year category, with returns of 18.95%.
The above past returns prove that investors will benefit if they stay invested for long periods of time.
What are the average returns of Balanced funds category?
The Below table gives us overall idea about the average returns generated by all balanced funds as a category.
The interpretation of data can sometimes be very tricky. For a different set of time periods, balanced funds might have given lesser returns. If our expectations are reasonable then I am sure balanced funds will deliver. I believe returns of 10% and above from a balanced fund (equity oriented) is a bonus.
Everything in life..has to have balance. It applies to investments too. I am sure you agree with me. Do you hold any balanced mutual funds? Share your views..Cheers!
(All the above plans are indirect plans, returns > 1 year are annualized and are Growth plans. Kindly keep in mind, past performance is no guarantee of future results- Image courtesy of Jeroen van Oostrom at FreeDigitalPhotos.net)
This post was last modified on July 10, 2023 11:47 am
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Thanks...shree
i have 2lacs in closed my RD...i do investment for 3years lumsum invest which is best mutual fund for short term and best return....
Dear Javed,
Suggest you to kindly read below articles and may revert to me;
Best MF MIPs.
Debt MFs - Types & Benefits.
Thanks...but invest sip which format is best regular or direct plan....plz clear my confusion..
Dear Javed..Suggest you to go through my article on 'Direct plans of Mutual Funds'.
shri...1) i have 1 lic money back policy 20 year term ....i want my retirement pension 1lacks per month after 30 years
2) i accumulated for my future good wealth...
Dear Javed,
Suggest you to invest in equity mutual funds for long-term instead of invest in NPS.
Kindly read my articles;
LIC money back plans review
Term insurance Vs traditional plans.
Thanks...shri..
for reply...plz..tell me how to open nps account my rural area national bank avoid open my nps account plz...tell me can i open online nps account ..or other way to open nps account... plz reply
Dear Javed,
You have not answered my questions.
By the by why do you want to open NPS? Your investment objective?
Hi shri... maine kuch research kar axis long term equity me 1000 sip suru ki h...maine aapko mail kiya ..but no reply... meri age 30 year hai mai meri retirement aur child education ke liye amount jama karna chahata hu
maine lic ki policy li h -1000month
apy-600month
ppf-1000 month
post Rd-1000month 5year
axis elss-1000month
aur1500 ki sip karna chaahta hu plz muje suggest me good fund for my children education after 15 year and my retirement after 30 years...suggest me good fund...plz
Dear Javed,
May I know the LIC policy name(s)?
Your investments are mainly in safe and secured options.
Do not invest in RDs for long-term. You can use RDs for short-term goals or to accumulate any emergency fund.
Kindly read : Avoid investing in FDs/RDs for long-term.
For kid's education goal - consider a balanced fund like TATA balanced fund. For your retirement goal - you may consider Franklin Prima plus & UTI mid-cap funds.
Kindly read:
Retirement planning goal.
Kid's education goal .
Top Equity funds.
Hi SreeKanth,
I am new in Mutual fund investment and 36 years old.I have a plan to invest 15000 per month for next 10 years.so could you please suggest the best option for me.
Thanks in advance.
Dear Jacob,
You may select 3 funds - Equity diversified, Mid-cap oriented and a Balanced fund.
Ex : Franklin prima plus, UTI mid-cap & HDFC Balanced fund.
Kindly read:
Best Equity funds.
MF portfolio overlap analysis tools.
My MF picks.
Hello Mr. Srikanth,
Like to invest 30 lakhs saving to mutul fund. Can i do on lum sum basis if so please suggest.However please
consider that am already nearing 60.
Appreciate your best possible investment solutions
Dear Govindan,
More than the age, its your investment objective & investment horizon which matter the most. So kindly let me know about them.
I am new in investment. My bank is Axis bank. They insist me to invest in their Hybrid fund 27 series? what is your opinion?
Dear Suresh,
Do you have any existing mutual fund investments? Let me know your financial goals??
Kindly avoid it. It is New Fund Offer.
Hi...shrikanth. .first thanks to ur informative articles.m 28 years old....I have to invest 5000 rs per month for 3 years through SIP. .having medium to low risk fund. .I have shortlisted some plans. .kindly give me ur opinion on that plz..i. e., rel top 200,Birla sunlife equity n frackline india.eagerly waiting ur reply. ..
Dear Priti..if your time-frame is around 3 years, consider investing in a balanced fund.
Hi SreeKanth,
I am new in Mutual fund investment and 33 years old.I have a plan to invest 2500 per month for next 10 years.so could you please suggest the best option for me.
Thanks in advance.
Dear Sumit..You can consider one balanced fund and one diversified equity fund to start with. (Ex : HDFC balanced fund and Franklin Prima plus fund)