Shield your Investment and Enhance your Capital Appreciation


Mutual funds are performing quite good, every new investor is fascinated about the mutual fund industry. Balanced mutual funds are the best fund to opt out for the investment. If you’re looking for an opportunity of investment with both offensive and defensive segment then balanced funds are made for you. Balanced mutual funds are best known for the capital appreciation as well as it helps investors to minimize the potential risk of the invested amount.

Balanced funds are the best suitable combination of the Debt Fund and Equity Instrument. First let’s talk about debt fund and equity instruments to understand how balanced fund works to minimize the potential risk and give pretty good capital appreciation.

What is Debt Fund

Debt fund is classified into an investment pool. Debt funds works as fixed income investment. Debt fund invests money into the secularized product where the investment risk is less. Debt funds also invests money into the bonds which could be either long term or short term. If you’re buying any debt fund then you are lending your money to the issuing entity.

Debt funds invest money into the different securities based upon their credit ratings. These credit ratings help fund manager to identify appropriate security with the potential of the disbursing promised return. There is massive variety of the debt fund options available for the investors who are looking for the fixed income and less risk on the investment.

What is Equity Instrument

Equity instrument are the fund which targets to the equity market. As name suggests fund manager invested money into the diversified stocks. Equity funds are known as the aggressive type of funds which helps to grow money fast upon the raise of the market. Risk factor is quite high in equity funds as they run on the basis of the equity market. Equity funds target stocks of the all sector including the large cap market, small cap market, mid cap market. Investor can invest into any of one or can have combination of these funds to have diversified portfolio.

If the investor is having ample of time and can wait for more time of period then equity funds are the best suited fund. Long term goal in the equity fund allows it to grow significantly by having the less impact of the market fluctuations.

What is Balanced Mutual Fund

Balanced mutual fund is the hybrid fund, as we discussed earlier it is the combination of two most liked fund. Balanced funds are the combination of the Debt Fund and Equity Mutual Fund. It helps to manage the Risk and Reward ratio. When you’re choosing balanced fund then your fund manager invests more than 60% money into the stocks and remaining money either into the bonds or debt.

Balanced Funds are the type of fund which gives more appreciation on your investment at the same time it keeps your money saved from the market fluctuations. Low risk investment is the most important key factor of the balanced mutual fund. These funds are perfectly suitable if you’re planning to enter into the market first time.

Why Balance Fund are So Popular

Balanced funds are most popular funds among the wide range of mutual fund. Balanced funds gives better risk adjustment based return. Balanced fund increases your capital at the same time it helps to protect invested money from the volatility of the market.

“Balanced fund encapsulates your investment into equity fund which keep enhancing your capital and debt fund which protects your investment from the market fluctuations”

Top 3 Balanced Mutual Funds

We’re sharing the most rated and high ranked balanced mutual funds. These fund list is on the basis of performances of the company and it’s return.

Balanced Mutual Fund Name 3 Years  5 Years
HDFC Balanced Fund  Around 10% Around 16%
L&T Hybrid Equity Fund Around 8% Around 15%
ICICI Prudential Equity & Debt Fund Around 11% Around 15%

Note: Data mentioned in the table are the key metrics for illustration purpose only. These are not the recommendation of funds. This presentation also do not claim to the right way to rank the funds. CAGR called as compound annual growth rate on basis of CAGR interest rates are mentioned.

  1. HDFC Balanced Advantage Fund

Investment objective of the HDFC Advantage Mutual Fund scheme is to provide investor capital appreciation. This fund is dynamic in nature which mixes both equity and the debt investment.

HDFC Balanced Advantage fund has performed quite well in last five years by giving the returns of an average 10% for 3 years of holding whereas around 16% of return on five years of the holding.

If you’re having the lump sum amount of 1,00,000 RS/- which you’ve invested in HDFC balanced fund for the period of 12 months then the return on your investment would be 1,11,178 with a gain of around 11%

Calculate the returns if you’ve any amount in the scheme, HDFC Balanced Advantage Fund 

2. L&T Hybrid Equity Fund

L&T Hybrid Equity Fund was previously known as the L&T India Prudence Fund. As name suggest this fund is enable investors to eligible for long term capital return which will be the mixture of equity funds and debt funds. More than 75% of investment is being invested into the equity market whereas remaining 35% of the investment is diverted into the debt funds and money market.

L&T Hybrid Equity Fund has returned around 8% on the total investment for the period of 3 years whereas around 15% returned for the holding of 5 years.

3. ICICI Prudential Equity & Debt Fund

ICICI Prudential Equity & Debt Fund is designed in order to fulfill balanced mutual fund requirement. This fund as name suggests invest in equity things as well as debt funds. This fund has returned around 11% of return in 3 years of holding while around 15% of return for the 5 years of holdings.


Balanced Mutual funds are the best way to start investment. Balance funds comes with the shield to protect your hard earned money from the volatility of the market at the same time balanced funds helps you to enhance your capital appreciation by making sensible investments in equity funds.

If you’ve invested in balanced funds then feel free to share your investment return experience with us by using below comment box.


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