Balanced Funds

Build diversified portfolio, don't chase the mirage of safe equity fund

There are three approaches investors may take as they decide their asset allocations

American Balanced Fund offloads Rs 1k-cr shares of Embassy Office REIT

American Balanced Fund on Thursday offloaded 2.9 crore shares of real estate investment trust Embassy Office Parks REIT for Rs 1,046 crore through an open market transaction. According to the bulk deal data available with BSE, American Balanced Fund sold 2,92,62,468 shares of the company. The shares were disposed of at an average price of Rs 357.61 apiece, taking the transaction size to Rs 1,046.45 crore. Meanwhile, ICICI Prudential Mutual Fund picked up the shares of the company. Shares of Embassy Office Parks REIT closed 3.56 per cent lower at Rs 360.94 on BSE on Thursday.

Strategy for meeting goals

Moving money from equity to debt in the last stages of any financial goal ensures that the corpus does not erode suddenly due to a fall in the stock market

Tipping point: Invest with at least a five-year horizon in balanced funds

If you want a moderate-risk product, and your fund has a decent track record, there is no reason to exit this category.

Equity balanced funds remain attractive due to fine long-term track record

Despite the recent outflows and anaemic returns, the category makes sense due to its fine long-term track record

Balanced funds shrink by 72% in five months to Rs 27 bn from Rs 100 bn

10% dividend distribution tax and instances of mis-selling to blame

Regret investing in balanced funds? Adopt a suitable exit strategy

When shifting, try to minimise the tax burden arising from this step

Looking at balanced funds over banks fixed deposits: What you should know

Those who are in need of regular income should shift their money to short-term debt funds and do systematic withdrawals from them

Want regular dividends? Balanced funds may not be your best bet

MIPs and ultra short-term funds may be a better bet for such purposes

Balanced funds aren't risk-free

Exposure to equities, especially to mid- and small-cap stocks, and also from holding higher-duration bonds can sometimes turn the tables on the investor

Balanced funds good for first-timers, retirees

With AMCs providing as many as 4-6 balanced fund options, investors need to be cautious before buying

Balanced funds gain among MF investors

Assets of such schemes have more than doubled in two years; 600,000 new accounts opened last year

Start investing in balanced MFs

These funds contain volatility better but might not beat the market during a bull run