Best Balanced Funds for Investment Horizon of 5-7 Years

Balanced schemes have faced a lot of changes in the past few months. From the name to the way they work, everything has been completely changed. The category itself has been changed to hybrid aggressive funds. But some things that haven’t changed are their optimal performance and the power to beat market volatility. So, today, we are going to see 3 balanced funds which you can invest in 2018 to enjoy the returns you usually dream of.

What Are Balanced Funds?

These are the type of mutual fund schemes that invest in a mix of equity and debt instruments. The allocation in these funds can range from 65%-80%, depending on the capital market conditions. After the re-categorization, the schemes from this category have been changed to hybrid aggressive. Some of the best funds from this basket include:

1. ICICI Prudential Equity & Debt Fund (G)     

This scheme was launched on Nov 03, 1999, and was previously known as ICICI Prudential Balanced Fund. Since its inception, ICICI Prudential Equity & Debt Fund (G) has got a great response from investors, and today, it has a total of Rs 28,266 crores asset (as on Jun 30, 2018) under its management. The annual average return given by the scheme since its launch is 14.59%. This fund from time to time has shown that it can show stability even when the equity market is going through major ups and downs. It currently has major investments in energy, finance, technology, and automobile sector, all of which hold great possibilities for future growth. For a more detailed analysis of this scheme, you can visit MySIPonline. 

2. Aditya Birla Sun Life Equity Hybrid '95 Fund (G)

This balanced fund was launched on Feb 10, 1995, and was previously known as Aditya Birla Sun Life Balanced '95 Fund. This scheme has provided the best average annual returns (20.49%) among all the funds from this category. It has beaten its benchmark throughout its life, except for the bearish markets of 2008. As of now, it has 74.54% investment in equities, and this allocation will help this scheme in generating optimal profits in near future. The minimum amount required to start an investment in this scheme is just Rs 500 and you can start a SIP through MySIPonline for as low as Rs 1000.

3. Reliance Equity Hybrid Fund (G)

This aggressive hybrid fund was launched on Jun 08, 2005, and was previously known as Reliance Regular Savings Fund. It has provided returns of 20.15% and 15.18% in 5 and 10 years (as on Aug 07, 2018), respectively, and has successfully beaten both its benchmark as well as category. The top holdings of the scheme include companies such as HDFC Bank, Grasim Industries, Infosys, Reliance Industries, ICICI Bank, etc. The minimum amount required to start an investment in this scheme is just Rs 500, and you can start a SIP with as low as Rs 100, which make it a good option for investors who are looking to start slow in the equity market.

So, these were the three balanced funds that you can opt from to start saving for your future. Balanced mutual funds, over the years, have been considered as an optimal investment choice as through these an investor can analyze the behavior of the equity as well as debt market. If you have any query about any of the above schemes or want to make an investment, then you can contact our experts at MySIPonline.


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