Here is a list of best balanced mutual funds in India that you can consider for Investing in 2018-19. Balanced funds try to bring balance in the portfolio by investing in both equity and debt instruments. These types of funds are also known as hybrid funds.
Balanced funds are suitable for investors with moderate risk profile who are looking for a mixture of safety, modest capital appreciation, and income generation from the investments. Let’s take a look at how to identify Balanced Mutual Funds along with a list of Best Balanced Mutual Funds in India.
How to identify Best Balanced Mutual Funds?
We recommend you to consider following factors while deciding to invest in Balanced mutual funds.
Asset allocation by Fund
The main advantage of the balanced mutual fund is it helps the investor to do diversification. The balanced fund invests in both equity and debt. One should look for a fund that allocates properly between equity and debt. If your risk appetite is low, it is better to choose funds which do not have more 70% exposure to equity.
Consistent performance of the funds is one of the key parameters based which we have shortlisted best-balanced funds. I strongly suggest you keep a watch on the past performance of the fund while taking a decision.
Category of Fund
As per latest categorization balanced fund category is renamed as Hybrid Fund. This includes conservative hybrid fund, balanced hybrid fund, aggressive hybrid fund and dynamic asset allocation fund. You should select fund category carefully.
Fund house reputation
Another factor to consider while selecting a mutual fund is the reputation of the fund house. A fund house should be reputed and should be at least 5-10 years old.
Mutual fund rating is another important factor for consideration. You should select a mutual fund with a higher rating. Consider rating given by CRISIL and Value research for the selection.
Expense ratio plays a major role in deciding fund performance. The expense ratio is a fee charged by the investment company to manage the funds of investors. Lower the expense ratio means better fund performance. You should select a fund with lower expense ratio.
Best Balanced Mutual Funds 2018
HDFC Balanced Fund
Fund Objective – The aim of this fund is to generate capital appreciation with current income from a combined portfolio of equity and debt instruments. This scheme invests up to 60% in equity and remaining amount in debt related instruments.
Why to Invest – HDFC Balanced fund has given consistent positive returns YOY. In last 5 years, this fund has given 19% annualized return. This fund is holding five-star rating by CRISIL and Value research. This fund is managed by experienced fund manager. The expense ratio of this fund is low. Portfolio quality of this fund is very good. You can consider investing in this fund for the long term.
SBI Magnum Balanced Fund
Fund Objective – To provide long-term capital appreciation along with the liquidity of an open-ended scheme by investing in a mix of debt and equity. This fund invests up to 65% in equity and remaining fund in debt.
Why to Invest – SBI Magnum Balanced Fund has given very good returns in the past. Last five years annualized return of this fund is 17%. In last one year, this fund has given 15% return. The expense ratio of this fund is very low. This fund is managed by an experienced fund manager. It is 3 star rated fund. This fund is holding very good stocks.
Aditya Birla Sun Life 95 Balanced Fund
Fund Objective – To provide long term capital appreciation by investing 60% of money in equity and 40% in debt instruments.
Why to Invest – Equity exposure of this fund is low. So, it is a good choice for first-time equity investors. In last five years, this fund has given 16% annualized returns to the investor. Performance history of this fund is very good. The CRISIL and Value Research rating of this fund is 3. One can invest in this fund.
Who can consider investing in Balanced Mutual Funds?
Balanced funds are highly suitable for the new investors. Especially for the people who are looking for the growth potential of equity without being completely exposed to the equity market. This fund can give moderate annualized returns in the range of 10-13%. If you are a conservative investor and looking for moderate gain you can consider balanced mutual funds for investment.