Balanced Funds are the new lifeline for Mutual Fund Industry. These funds are also known as hybrid funds. Balanced Funds are of two types i.e. equity oriented and debt oriented. Equity oriented balanced funds invest 65% to 80% in equities and balance in debt instruments. On the other hand, debt oriented balanced funds follow the reverse strategy and invest around 70% to 80% in Debt Instruments and balance in equity. They are also referred as capital protection funds. I explained the same in my post, Should i invest in Capital Protection Funds? For practical purpose, Balanced Funds means ... Read More
Should i invest in Capital Protection Fund ?
There is a famous saying that Marketing rules the roost. Capital Protection Fund is one such example. The biggest fear of any investor is to lose money. Capital Protection Fund capitalize on this fear. Its like providing safety net to your principal aka Capital invested and delivering returns over and above the principal amount invested. In short, the fear of loss of basic capital/principal is eliminated...Sounds interesting!!! Some MF advisors project Balanced Funds as type of Capital Protection Fund but it is not correct. Balanced Funds are riskier as they are classified as Hybrid Funds - ... Read More