Whatever you do in your life, there’s always a need to maintain a balance between the things which are important and those which aren’t. If you do not achieve this equilibrium, things won’t be very pleasant and you’ll always be struggling to infuse happiness in your life. The same theory applies in the event of mutual fund investments, where you have to be wise enough in parting the money into different avenues. To overcome these difficulties and to streamline the process of secure investing, Balanced Fund was introduced to the market which is a power pack plan of both steady returns and risk coverage. If you are not aware of these funds, or only have a basic idea of what these funds actually are, then this article is a must read for you as it contains several such points about Balanced funds that will bring glory to your knowledge about this category of mutual funds.
What, Why and How – Everything Explained About Balanced Funds
What?
Let us take the first part first. What are Balanced Funds? Well, by simply reading these two words, anybody can get an impression that this is a type of mutual fund investments where a balance is made in the portfolio by investing in both the aggressive and calm sectors of the market. This is what Balanced Mutual Funds follow. They are a pool of equity and debt instruments with a significant balance between these two genres of investment, so as to incorporate the flavours of both steady returns and risk cover
Why?
Let us come to the second part. Why do you think fund managers suggest that every investor should keep at least one balanced funds in his portfolio, while investing in mutual funds? Let’s understand this with a simple situation through which every person on this planet has gone through. Remember, when you used to come out of the exam hall on the last day of your examination and used to say that all your hopes are on subject A, if God forbid you do not score well in others? This is exactly what Balanced Mutual Funds are, your lucky subject in the exam of mutual fund investments. If for example, some of your funds belonging to other categories do not perform well, or even hurt your wealth due to immense fluctuation embedded in their nature, then Balanced Funds are the only resort that will add stability to your portfolio and provide cover to your investment from shrinking further.
How?
Now that you have understood that how important it is to add at least one Balanced Fund to your portfolio; the next question comes how to find the correct scheme that could be really beneficial for you. To answer that, some of the Best Balanced Mutual Funds have been shortlisted and written below, to help you in picking one or more for your portfolio: -
Hopefully, after reading this article, you have gained enough knowledge about the Best Balanced Funds in the business, and are planning to add one to your portfolio very soon. Now, don’t just stare at your computer screen. Go, get in touch with your financial advisor today for seeking the best investment plan.
This article is written with the aim to create awareness amongst the investors regarding Balanced Funds and their importance, and make them aware about the best products that they could choose for their prospective investment.
Dishika is a patron of finance with keen interests in other fields, such as music, reading and blogging. With the first two being her occasional passions, she takes care of the third on a daily basis through MySIPonline.