Mutual funds are a good source of investment. You get a choice of investment funds to invest in, the portfolio is diversified and managed by expert managers, you can invest small amounts regularly and you also get great returns. That is why investors, both risk takers and risk-averse, choose different types of mutual fund schemes for investing their savings. While equity mutual funds give good returns at high risks, debt mutual funds are low risk avenues whose returns are also low. If you are looking for moderate returns you can choose balanced mutual funds.
Balanced funds are a mix of equity and debt which give moderate returns at moderate amount of risk. Here are the top 5 balanced funds which you can choose to invest in 2018 –
HDFC Balanced Fund
Launched in September 2000, HDFC Balanced Fund has given consistent returns since inception. The return since its launch date stands at 16.59% and the fund has a turnover of 57%. The fund’s benchmark is NIFTY 50 Hybrid Composite Debt 65:35 and the returns in the last one year has been 11.63%. In equity, the fund invests mainly in financial companies like HDFC Bank, Axis Bank and ICICI Bank to name a few. In case of debt, central government loans and other securities are chosen.
SBI Magnum Balanced Fund
This is an old and trusted fund which was formed in December 1995. The assets under management as on 31st March 2018 are Rs.21, 802 crores and the expense ratio is 1.96%. Giving steady returns, the fund’s last year return is 15.35%, three-year return is 11.04% and five-year return is 17.97%. The top holdings of the fund include HDFC Bank, State Bank of India, 6.68% GOI 2031 and 6.84% GOI 2022.
L & T India Prudence Fund
Crisil has rated this fund four stars which shows that the fund is a good scheme. Launched in January 2011, the fund’s turnover is 184%. The fund follows two benchmarks of S&P BSE 200 (70) and CRISIL Short-Term Bond (30). The fund’s three-year return is 12.52% and five-year return is 19.28%. as on 31st March 2018, the fund’s expense ratio stands at 1.99% and the assets under management are at Rs.9820 crores.
Franklin India Balanced Fund
The fund was formed in the year 1999 and has given a return of 14.12% annually ever since inception. Minimum 65% of the fund is invested in equity and a maximum of 35% is in debt instruments. Besides investing in the Government’s fixed income bonds, the fund also invests in Hinduja Leyland Finance Limited, HDFC Bank, Axis Bank and Power Grid Corporation of India Limited among others.
ICICI Prudential Balanced Advantage Fund
This is a relatively new fund which was launched in December 2006 and has accumulated a total asset base of Rs.26, 050 crores as on 31st March 2018. The return since launch is 11.32% while the last 5 year return stands as 14.63% annually. The fund follows the benchmark of CRISIL Hybrid 50+50 Moderate Index and has a turnover of 469%.
If you are a conservative investor looking for moderate risk and returns, choose balanced funds. The above funds are some of the best performing balanced funds available in the market today. You can invest your money in one or more of these funds and avail attractive returns.