Balanced Funds Suitable in Current Market Scenario

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Dear Investors,   If you plan to save for goals that are 4-6 years away are advised to go for balanced funds. These funds invest in a mix of equities and debt, giving the investor the best of both worlds. The fund gains from a healthy dose of equities but the debt portion fortifies it against any downturn.    Types of Balanced Funds Equity-oriented Balanced Funds:- These funds have a larger portion of their corpus (at least 65%) invested in stocks and qualify for the same tax treatment as equity funds. This means any gains are tax-free if the investment is held for more than one year. These schemes are more volatile due to the higher allocation to stocks.  Debt-oriented Balanced Funds:- are less volatile and suit those with a lower risk appetite. However, the price of this relative safety is that they offer lower returns and the gains are not eligible for tax exemption. If the investment is held for less than three years, the gains will be added to your income and taxed at the normal rate. The tax is lower if the holding period exceeds three years. The gains are then taxed at 20% after indexation benefit, which can significantly reduce the tax.  Balanced funds have done very well in recent months because both the equity and debt markets have rallied in tandem. But this performance might not sustain, so investors should tone down their expectations. Also, investors might note that the one-year returns of debt-oriented balanced funds are more than those from equity-oriented schemes. But this changes when we look at the medium- and long-term returns. The five-year returns of the top five equity-oriented balanced funds are significantly higher than those of debt-oriented balanced schemes. This statistic should be kept in mind if the investor plans to remain invested for 4-6 years.  These are a few schemes of debt and equity oriented mutual funds with their recent performance.

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CLICK TO INVEST NOW   If interested call us on: Mukesh Gupta  +91-9810184368 B Com, FCA, CPFA, CFP^CM  Director Or Prabhakar Sharma +91-9899835232 CFP^CM, CWM Wealthcare Securities Pvt. Ltd. A 54 A, Lower Ground Floor, Lajpat Nagar- II, New Delhi-110024 Give us a Missed call on +91-98710 90316 to arrange a call back from our office Do Whatsapp +91-9582012572 Telephone No 011- 4657 5550 (Five lines) sa...@wealthcareindia.com  www.wealthcareindia.com Source Economic Times