How Can You Balance Your Portfolio Using Balanced Funds?

Whenever it comes to investing in mutual funds, people either go for equity or debt  funds individually according to their risk profile. They are least aware of the funds that can provide the benefits of both the worlds. These funds invest in a conglomeration of stocks, bonds, and other money market instruments. They are a good fit in the portfolio if you are looking for a mixture of safety, income, and modest capital appreciation. The equity and debt investments are split in the ratio of 65:35, respectively.

MySIPonline, a fast-growing investment platform, would like to recommend some of the top performing balanced funds that can help you stabilize your portfolio.

1. HDFC Prudence Fund : This is an open ended hybrid-equity oriented scheme that was launched early in 1994 with an objective of generating long-term capital appreciation from a balanced and well diversified portfolio that invests in equity and debt instruments. It is being managed by ace fund manager Mr. Prashant Jain since its inception. As on March 31, 2018, the portfolio composition of scheme was divided into equity, debt, and cash equivalents having 75.24%, 22.84%, and 1.92% allocation, respectively. It is highly overweight in sectors such as financial, energy, and technology. Those investors who can bear moderately high risk and are looking for a balanced fund must invest in this as it has capably delivered average an annual return of 18.87% since its launch.
2. Aditya Birla Sun Life 95 Fund : The Net Asset Value of the fund as on May 10, 2018 is Rs.755.66 which shows that the fund is very old and highly experienced, i.e., it has undergone all the major bull and bear phases of the market. It has proficiently delivered 20.66% average annual returns to its investors. It has 76.78% allocation of assets in equity and the remaining in debt instruments, and has a concentration on large-cap companies. The scheme has grown its asset size of Rs.14,662 as on April 30, 2018 which shows a big contribution to the total asset size of the mutual fund industry.
3. ICICI Prudential Equity & Debt Fund : This is also an early bird in the mutual fund market as it was launched on November 03, 1999 and since then, it has proffered average annual returns of 14.74%.  The fund has climbed to a four-star rating from a three-star rating and follows a blend of value and growth style of investing. It has been managing an asset size of Rs.28,807cr which is comparatively better than its peers. It has 64.18% asset allocation in equity, 28.56% in debt instruments, and 7.26% in cash equivalents. Investors can cherish the fact that it has an expense ratio of 2.17% which is comparatively less than the category average of 2.45%.

If you are interested in investing in any of the schemes listed above, then you can reach out to the experts at MySIPonline, take details about the schemes, and shoot your queries related to the investments. We will be more than delighted to help you.