What are Balanced Funds

These are a fund that constitutes of investments in equities, debt and occasional investments in short term money market all in a single fund. Balanced funds have a fixed percentage of investment in every asset class. An Equity Oriented Balanced Fund will have minimum 65% of equity and 35% of Debt investment. A Debt Oriented Balanced Fund will have 70 – 85% in debt and 15 – 30% investments in equity. A balanced fund is ideal for investors who are looking for a mix of safety, income and modest returns on their investment. The amounts that such a mutual fund invests into each asset class usually must remain within a set of minimum and maximum percentage according to the mandate of the fund.