Article

5 Balanced Fund

04 Oct 2018 Jitender Singh

Balanced funds invest in equity and debt instruments to follow a moderate approach. Generally, balanced funds invest 70-80% in equity and 20-30% in debt depending on the market condition and investment mandate. The main objective of balanced funds is to create wealth in long term by following a moderate approach.

These funds are less volatile than equity mutual funds since they invest 20-30% in debt securities. Thus, these funds are suitable for investors who are looking to create wealth in long term with comparatively less risk than equity mutual funds. Below are some of the top five recommended balanced fund.

Scheme Name

AUM (Rs Cr)

1 Y (%)

3 Y (%)

5 Y (%)

Aditya Birla SL Equity Hybrid '95 Fund(G)

15,001

-0.8

9.4

16.6

DSPBR Equity & Bond Fund-Reg(G)

7,290

0.1

9.1

16.6

ICICI Pru Equity & Debt Fund(G)

29,032

6.4

12.4

18.2

Reliance Equity Hybrid Fund(G)

14,481

2.7

10.5

18.1

SBI Equity Hybrid Fund-Reg(G)

28,105

5.7

9.7

17.5

1 year returns are absolute; 3 years and 5 year returns are CAGR
AUM as of August 2018, Returns are as on October 01, 2018
Source: ACE MF

Aditya Birla SL Equity Hybrid’95 Fund

  • Aditya Birla SL Balanced’95 Fund tactically allocates 50-75% to equities depending upon the market scenario.
  • The fund follows top-down approach to select the sectors and bottom-up approach for stock selection.

DSP BlackRock Equity & Bond Fund

  • DSP BlackRock Equity & Bond Fund invests in equity for potential high-return and to curtain the volatility, it invests in fixed income instruments.
  • Fund manages a well-diversified equity portfolio. It invests in Large-cap stocks, which are expected to benefit from economic recovery and applies bottom-up approach to invest in mid/small cap stocks to generate alpha.
  • In debt portfolio, it maintains high quality fixed income portfolio and actively manages duration through long dated government bonds.

ICICI Pru Equity & Debt Fund

  • ICICI Pru Balanced Fund does a tactical allocation between debt and equity to ensure optimal risk reward.
  • The fund increases its exposure in debt market when the market is overvalued and increases its allocation to equity when market is undervalued.

Reliance Equity Hybrid Fund

  • Reliance Reg Savings Fund-Balanced Option does a tactical allocation between debt and equity to generate superior risk adjusted returns.
  • To generate alpha, the fund primarily invests in large-cap stocks with some tactical allocation to emerging leaders.
  • In debt securities, the fund follows accrual strategy and invests in high quality instruments with moderate duration.

SBI Hybrid Equity Fund

  • SBI Hybrid Equity Fund invests in a diversified portfolio of equities of high growth companies and balances the risk through investing the rest in fixed income securities.
  • It has mandate to invest 65-80% in equity and 20-35% in debt instruments.

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5 Balanced Fund

04 Oct 2018 Jitender Singh

Balanced funds invest in equity and debt instruments to follow a moderate approach. Generally, balanced funds invest 70-80% in equity and 20-30% in debt depending on the market condition and investment mandate. The main objective of balanced funds is to create wealth in long term by following a moderate approach.

These funds are less volatile than equity mutual funds since they invest 20-30% in debt securities. Thus, these funds are suitable for investors who are looking to create wealth in long term with comparatively less risk than equity mutual funds. Below are some of the top five recommended balanced fund.

Scheme Name

AUM (Rs Cr)

1 Y (%)

3 Y (%)

5 Y (%)

Aditya Birla SL Equity Hybrid '95 Fund(G)

15,001

-0.8

9.4

16.6

DSPBR Equity & Bond Fund-Reg(G)

7,290

0.1

9.1

16.6

ICICI Pru Equity & Debt Fund(G)

29,032

6.4

12.4

18.2

Reliance Equity Hybrid Fund(G)

14,481

2.7

10.5

18.1

SBI Equity Hybrid Fund-Reg(G)

28,105

5.7

9.7

17.5

1 year returns are absolute; 3 years and 5 year returns are CAGR
AUM as of August 2018, Returns are as on October 01, 2018
Source: ACE MF

Aditya Birla SL Equity Hybrid’95 Fund

  • Aditya Birla SL Balanced’95 Fund tactically allocates 50-75% to equities depending upon the market scenario.
  • The fund follows top-down approach to select the sectors and bottom-up approach for stock selection.

DSP BlackRock Equity & Bond Fund

  • DSP BlackRock Equity & Bond Fund invests in equity for potential high-return and to curtain the volatility, it invests in fixed income instruments.
  • Fund manages a well-diversified equity portfolio. It invests in Large-cap stocks, which are expected to benefit from economic recovery and applies bottom-up approach to invest in mid/small cap stocks to generate alpha.
  • In debt portfolio, it maintains high quality fixed income portfolio and actively manages duration through long dated government bonds.

ICICI Pru Equity & Debt Fund

  • ICICI Pru Balanced Fund does a tactical allocation between debt and equity to ensure optimal risk reward.
  • The fund increases its exposure in debt market when the market is overvalued and increases its allocation to equity when market is undervalued.

Reliance Equity Hybrid Fund

  • Reliance Reg Savings Fund-Balanced Option does a tactical allocation between debt and equity to generate superior risk adjusted returns.
  • To generate alpha, the fund primarily invests in large-cap stocks with some tactical allocation to emerging leaders.
  • In debt securities, the fund follows accrual strategy and invests in high quality instruments with moderate duration.

SBI Hybrid Equity Fund

  • SBI Hybrid Equity Fund invests in a diversified portfolio of equities of high growth companies and balances the risk through investing the rest in fixed income securities.
  • It has mandate to invest 65-80% in equity and 20-35% in debt instruments.