Balanced funds are the funds that own stocks as well as bonds. Balanced funds are called balanced funds because they maintain a balance between the two asset classes smoothly by placing 60% in stocks and 40% in bonds, although the percentage can vary. They are often also known as hybrid funds. These funds work to increase investments in comparison to stocks and other fixed-income tools such as bonds and government securities. It is always recommended for an investor to consult a mutual fund expert or an advisor before investing, the best part is that with the advent of digital media many platforms for mutual fund investments have emerged out intending to guide and enlighten people about mutual funds and how they work. The advisors understand your financial position and accordingly suggest the best investment solutions and schemes for you. If you are searching for a mutual fund advisor in Pune and around, we would be glad to assist you with the entire process.
Balanced funds are fit for investors with a constrained risk appetite since the chances of losses in this investment are reduced to a large extent. For long term goals like saving for education, marriage, plans for retirement, etc. this investment has proven to be highly beneficial as these schemes provide long term cash inflows, and they mostly boost returns in the future.
The most attractive part about balanced funds is that these funds offer many alternatives to investors. They are a mix of debt funds and equity funds, and with the debt component, these schemes offer capital appreciation as well as the solidity of the investments. They help you diversify your investment portfolio as there are also SIPs starting with a minimum monthly amount of ₹ 500. Since in case of balanced funds, balancing and rebalancing the investment portfolios may be a significant concern for investors, that actually is not an issue to be even minutely worried about as the fund managers do the disciplined rebalancing of the fund targeting equity allocation at 65%, which makes this product exclusive. Balance funds have also proven to be highly profitable when it comes to the tax impact; with more than 65% exposure in equity funds, these funds enjoy a tax-free income after a holding period of 1 year.
The procedure to invest in balanced funds is extremely simplified now that everything has gone digital. The first thing you have to do is identifying your purpose; once you are done with that, you should do some research on the schemes available and accordingly shortlist some of them. Next, you must get in touch with an advisor to understand the whole scenario better and to receive expert guidance on the schemes and plans. After you decided how much to invest and in which scheme as per the advise, all you will need are a couple of documents like PAN Card & residential proof and your passport size photographs.
So what are you waiting for? Consider investing in balanced funds today!
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