| Funds with higher stock allocations typically | | | | 1. It gives moderate returns |
| experience higher volatility. Fixed income | | | | 2. It can minimize the risk of investment in a |
| investments tend to have lower returns but are | | | | capital market to a large extent. |
| less volatile. Balanced funds attempt to find a | | | | Who is suitable for investing on balanced funds? |
| happy medium where the volatility is reduced but | | | | Careful investors who want to get exposure to a |
| the returns are high enough to be acceptable. | | | | substantial amount of equity and also want the |
| What is balanced mutual funds? | | | | security on the other hand can opt for this sort |
| A balanced fund is one of the types of various | | | | of scheme. It is good for people into a higher age |
| mutual funds that available in the market,it is a | | | | branch and people who is saving money to meet |
| fund that invests in a combination of both stocks | | | | a |near-term goal. It is not recommended for |
| and bonds. It invests about 50%-60% in stocks | | | | people who want to get a high equity exposure, |
| and the rest in bonds. Alternately these are also | | | | for them equity schemes can be recommended. |
| called as "asset allocation funds" or "Hybrid funds". | | | | Best performing balanced mutual funds are those |
| Most balanced funds are flexible in their asset | | | | that tide over the embarrassment by actively |
| allocation, they keep their options and change the | | | | managing the asset to maximize growth and |
| allocation as per the demands of market condition | | | | regular incomes come what may. A fund manager |
| but subject to the regulations by laws of | | | | is at liberty to sell and buy stocks and bonds any |
| government and SEC (Securities & Exchange | | | | number of times in his endeavor to track the |
| Commission). | | | | market. A best fund will not down play the |
| Advantage of Balanced mutual funds: | | | | contribution of bonds at times of bear runs. |