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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Hello sir i m new in investment i want to invest in MF SIP basis but when i try to invest there are a lot of confusion to select funds.where to invest open/close ended, either in debt/equity/balanced, either in growth/divedent either in large cap/mid cap/large cap.little bit confusion on return % while surfing money control for ex. 34% is it given benefit of 34% or assurance of 34% return of my invested money.and how to select time period like in money control for XYZ fund its shows 1 year 42% for 3 year 31% and 5 year 24% then what time period should i have select.kindly guide me to select and invest in MF.finally how to invest though money control or same/ direct website/broker..does they charge anythingmight be my questions will be very foolish and basic but truth is i don’t know anything about MF. I want to invest 100000 fro FD and 5 year plan. Sugesst me how can investment. I can also invest 2000/-₹ monthly.. Which is better option . waiting for your valuable response.
Hello sir i m new in investment i want to invest in MF SIP basis but when i try to invest there are a lot of confusion to select funds.where to invest open/close ended, either in debt/equity/balanced, either in growth/divedent either in large cap/mid cap/large cap.little bit confusion on return % while surfing money control for ex. 34% is it given benefit of 34% or assurance of 34% return of my invested money.and how to select time period like in money control for XYZ fund its shows 1 year 42% for 3 year 31% and 5 year 24% then what time period should i have select.kindly guide me to select and invest in MF.finally how to invest though money control or same/ direct website/broker..does they charge anythingmight be my questions will be very foolish and basic but truth is i don’t know anything about MF. I want to invest 100000 fro FD and 5 year plan. Sugesst me how can investment. I can also invest 2000/-₹ monthly.. Which is better option . waiting for your valuable response.
Sir, Thank you for your great article.I am a student.I want to invest in HDFC/ICICI balanced mutual fund.I cn spare 2000/3000 monthly.Can I invest for 3-5 years?? And can you tell me what are the returns I will b getting after 3 and 5 years??
sir iam madhu iam intrested to invest mutual funds. that is i don't want to risk and usefull to tax saver fund. my goal is after 10 years i want 50,000,00/-. iam inveted monthly 1000/- it is possible what is good fund.and i have two kids.
Dear Sree,
I am new to the MF market. Could you please suggest in which Mutual funds plan I have to invest to begin SIP. I am 29 years..i am interested in balanced funds as well as tax saver.
Your suggestion highly appreciated
hello sir, i am 30 years old 1)my goal is 15 year peried to generate 25 lacks for child education?
2)retirement perpose after 30 years get 1 carore rupee
which fund better for my two purpose and how many invest thru sip plz suggest me.....
I heard that we get higher returns if we do mutual fund investment directly than through online facilitators like fundsindia. Is it possible to do direct investment online?
Equity oriented funds must have atleast 60% in equities but for tax- avoidance mininmum 65% is required. Please let me know which of the balanced equity oriented funds belong to the latter category.
Hi Sreekanth,
i am 31 year old I want to invest in SIP for 15 years and want output of 75 lacks after 15 years.
Please let me know the fund names in which I should invest and also the amount of monthly investment.
Dear Sudeep,
Kindly go through this article : Calculate the future value of your investments to find out the required sum of investment.
Also go through this article : Top Equity funds.
Dear sir,
I am new to investment in MF.I need to know :how % of growth/returns is calculated?for eg.if Nav of a particular fund is 200 today,and I invest in it for 10 yrs.after 10 yrs, the nav is 400,then what is the % growth ?
Dear Suneel,
Kindly go through my articles;
Calculate Future value of your investments
Five Formulas to calculate the Investment Returns.