Best Balanced Mutual Funds to Invest in 2018

Balanced mutual funds can be equity oriented or debt oriented hybrid funds.

If the average equity exposure of balanced fund is more than 60% and the remaining 40% is debt products then it is treated as Equity Oriented Balanced Fund. This means the major portion of the funds is invested in equity.

If the average debt exposure is around 60% and equity is 40% then these funds are treated as Debt Oriented Balanced Funds.

If you do not wish to take too much risk, but wish to have exposure to equities, balanced funds are a good way forward. These funds are less volatile, and when the markets fall, they are hurt less than others.

Tax Efficiency

Balanced funds are a tax efficient way of having a debt exposure. These funds are treated as equity funds for taxation. Dividends from these funds are tax-free and there is no tax on long-term equity gains.

Best Mutual Funds to invest in 2018

Best ELSS Tax Saving Mutual Funds for 2018

Balanced funds are suitable for investors with a moderate risk profile and investment horizon of over three years. On the equity side, the fund is managed actively based on valuations in the market, as the portfolio is constructed keeping in mind the conservative risk profile of investors. This could also be a product for maiden investors to start off with, owing to lower volatility and tax benefits. Being a product that works across market cycles, and aims to offer the benefits of asset allocation, this product could form part of investors’ core portfolio.

Best Balanced Mutual Funds

Here is the list best balanced mutual funds you can invest in 2018

Reliance RSF Balanced

L & T India Prudence Fund

HDFC Balanced Fund

ICICI Prudential Balanced Fund

DSP BlackRock Balanced Fund

Birla Sun Life Balanced 95 Fund

Franklin India Balanced Fund

Canara Robeco Balance

SBI Magnum Balanced Fund

Tata Balanced Fund

Reliance Regular Savings Fund – Balanced

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