" Balanced Mutual Fund should be the first choice of a New Investor "

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Hybrid: Equity-oriented

  • This Mutual Fund is also called Balanced Fund.
  • 65 to 80 % of total money in this type of Mutual Fund is invested in equity / stock market & rest 20 to 35 % of balance money is invested in fixed income instruments like Bond, Govt securities etc.
  • The risk factor is minimum in this type of Mutual Fund. 
  • Return on investment is good and well above  Fixed Deposit/ PPF/TD present in Indian market.
  • Profit gained after minimum one year of investment is termed as' Long Term Capital Gain'.
  • This long term capital gain is totally exempted from paying income tax.
Now, there are numbers of Mutual fund schemes from different mutual fund houses. We will discuss few good funds as examples of 'Hybrid: Equity-oriented' category.
  • HDFC Balanced Fund: Invests in stock market as well as fixed income instruments. Yearly return of this fund is roughly 20 % as on date.
  • L & T Prudence Fund: Invests in stock market as well as fixed income instruments. Yearly return of this fund is roughly 19 % as on date.
  • ICICI Prudential Balanced Fund : Invests in stock market as well as fixed income instruments. Yearly return of this fund is roughly 19 % as on date.
The examples are given above for your easy understanding. There are other good funds available in this category, which may be found easily in the internet.



Happy Investing !!!
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Comments

  1. Unknown23 November 2017 at 09:26

    I have balanced fund in my portfolio. I want to investment in mid cap oriented fund now. A little bit aggressive. Aditya birla sl Pure value fund. How about that ?

    ReplyDelete
  2. PRADIP24 November 2017 at 00:22

    The fund you have chosen is very good. But you should be invested in the said MF for at least 07 years to get very good result.

    ReplyDelete
  3. Avijit6 December 2017 at 23:25

    Why don't we take risk initially.you can't take risk at the age of 60.so please let me know why you always suggest to invest safely. :)

    ReplyDelete
  4. PRADIP7 December 2017 at 06:12

    Equity Mutual funds are subject to market risk. We don't want to lose our hard-earned money. Hence, we want to balance between safety as well as return on investment. As there is no guaranteed return, there may be chance of loss or reduction of capital.
    If you want to take high risk, then you can go for Mid Cap as well as Small Cap Equity Fund. But you should invest in SIP mode and stay invested for at least 10 years to be a winner in the long run.

    ReplyDelete
  5. PRADIP6 March 2018 at 08:22

    Dear readers,
    Please note that Govt of India has introduced LTCG tax of 10% on Capital Gain over Rs.1 Lakh in the Budget-2018.

    ReplyDelete
  6. Phani Kumar23 June 2020 at 03:14

    Hey, thanks for the information. your posts are informative and useful. I am regularly following your posts.
    Prince Pipes IPO

    ReplyDelete

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