THE MAIN PROBLEM THAT WE ENCOUNTER WHILE MAKING INVESTMENT DECISIONS IS "EMOTION". SOME ONE GREAT ONCE TOLD ME " IF A PERSON IS CAPABLE OF WINNING OVER TWO EMOTIONS - FEAR & GREED , HE SHALL CREATE WEALTH MUCH MORE THAN MANY OTHERS "
Wouldn't it be GREAT if there is a Mutual Fund where I can tell you "Invest & Forget" ????
Well the answer lies here - BALANCED FUNDS
For Starters , a BALANCED FUND is a fund that has dual investment exposure - Equity & Debt.
Generally, equity accounts for 70% of the total investments whereas the debt accounts for nearly 30% of the investments.
As a result , as an Investor , you have DUAL ADVANTAGE - GOOD RETURN ON EQUITY AND LOW RISK ON DEBT. IT OFFSETS PARTIAL HIGH RISK OF EQUITY WITH THE DEBT COMPONENT AND UPLIFTS AVERAGE RETURNS ON DEBT WITH HIGH RETURNS ON EQUITY COMPONENTS.
TODAY WE SHALL TALK ABOUT THE BEST PERFORMING BALANCED FUNDS IN INDIA:-
Based on various Research articles and other sources of data used , I have rounded off on 5 best Mutual Fund Schemes in BALANCED Segment.
1. ICICI PRUDENTIAL BALANCED FUND
With returns of 21% and 15% over 3 years and 5 years respectively is a reason enough for you to start with it right away.
Its top equity investments include big names like Bharti Airtel , HDFC Bank, Coal India, RIL, Cipla and ICICI Bank among others. Except for Airtel all the stocks seems solid enough to keep the momentum build by the fund.
Majority of debt is in the form of Govt Securities and PSUs thus giving a good support to the returns with minimal risks.
2. HDFC PRUDENCE FUND
This fund has more or less been consistent in top 10 in its category. It is most ideal for an investor seeking low risks comparitively. It has one of the highest Asset Under Management which means investors have consistently relied upon this fund to create and build wealth for them.
Its top equity investments include mainly financial sector companies like SBI ,ICICI, BOB as well as big names like Maruti Suzuki , L & T, Infosys among others. There seems no reason why any of these would cause trouble to the fund or its investors.
It comes with one of the best basket of Debt securities ( mostly GOI ) and hence amongst one of my favorites to put my hard earned money.
3. HDFC BALANCED FUND
Wouldn't it be GREAT if there is a Mutual Fund where I can tell you "Invest & Forget" ????
Well the answer lies here - BALANCED FUNDS
For Starters , a BALANCED FUND is a fund that has dual investment exposure - Equity & Debt.
Generally, equity accounts for 70% of the total investments whereas the debt accounts for nearly 30% of the investments.
As a result , as an Investor , you have DUAL ADVANTAGE - GOOD RETURN ON EQUITY AND LOW RISK ON DEBT. IT OFFSETS PARTIAL HIGH RISK OF EQUITY WITH THE DEBT COMPONENT AND UPLIFTS AVERAGE RETURNS ON DEBT WITH HIGH RETURNS ON EQUITY COMPONENTS.
TODAY WE SHALL TALK ABOUT THE BEST PERFORMING BALANCED FUNDS IN INDIA:-
Based on various Research articles and other sources of data used , I have rounded off on 5 best Mutual Fund Schemes in BALANCED Segment.
|
Fund Name
|
3 year CAGR
|
5 year CAGR
|
|
Tata Balanced Fund
|
23.6
|
16
|
|
ICICI Balanced Fund
|
21.8
|
15.5
|
|
Birla Sunlife 95 fund
|
20.7
|
14.1
|
|
HDFC Balanced Fund
|
21.6
|
14.6
|
|
HDFC Prudence fund
|
21.6
|
13.2
|
1. ICICI PRUDENTIAL BALANCED FUND
With returns of 21% and 15% over 3 years and 5 years respectively is a reason enough for you to start with it right away.
Its top equity investments include big names like Bharti Airtel , HDFC Bank, Coal India, RIL, Cipla and ICICI Bank among others. Except for Airtel all the stocks seems solid enough to keep the momentum build by the fund.
Majority of debt is in the form of Govt Securities and PSUs thus giving a good support to the returns with minimal risks.
2. HDFC PRUDENCE FUND
This fund has more or less been consistent in top 10 in its category. It is most ideal for an investor seeking low risks comparitively. It has one of the highest Asset Under Management which means investors have consistently relied upon this fund to create and build wealth for them.
Its top equity investments include mainly financial sector companies like SBI ,ICICI, BOB as well as big names like Maruti Suzuki , L & T, Infosys among others. There seems no reason why any of these would cause trouble to the fund or its investors.
It comes with one of the best basket of Debt securities ( mostly GOI ) and hence amongst one of my favorites to put my hard earned money.
3. HDFC BALANCED FUND
With AUM of Rs1920 crores and nearly
5 year track record of 19% CAGR, this is certainly one of the best mutual
funds. One of my top 2 funds in the list.
Its Equity investments consists of the best diversified basket including Banking , IT as well as Pharma in the names of HDFC , RIL , Infosys , Aurobindo among others.
One of the Best Funds in the context of debt holdings. Its debt consists almost full of Govt Securities and there is no clustering in it.
4. TATA BALANCED FUND
I personally like this fund because
of its potential to perform well ahead. It has given an average 16% CAGR over
last 5 years and 23.5% over 3 years. The stock portfolio is also very decent
and has good potential. The NAV is around Rs152.
One of the best Holding patterns has been evidenced in this fund. What amazes me the most is none or very few of its stock are trading in the red which means it has the most promising set of stocks to bet on.
For people wanting moderate risk to return ratio , this is the name that I'd suggest,
5. BIRLA SUN LIFE 95 FUND
It is one of the oldest funds in the Industry. One thing about this fund that concerns me is the diversity of its holdings. However, in times of high volatility , it is more of a blessing to be diversified.
Top holdings of this balanced fund
include Reliance, HDFC Bank, TATA Motors, Maruti Suzuki.
My sources for today's post include various online research sites and blogs.
Disclaimer - The past analysis of the funds in no way assures its performance in the future. Hence all your investments should be made after due consultations with your Investment Advisors.
WISHING ALL THE READERS A HAPPY DIWALI AND A PROSPEROUS NEW YEAR.
REGARDS.
