2. What is Balanced Fund?
Balanced fund is a type of hybrid plans. It invests in a mix
of both equity and debt and has a equal role to play in
creating long term wealth.
This type of fund typically invest 65-75% of their portfolio
in equity, and the balance 25-35% in debt.
Equity component offers potential to grow capital by
investing in stocks while Debt component provides stability
through fixed interest which makes the fund less volatile.
3. Who should invest?
First time equity mutual funds investor.
Investor having low risk appetite.
Those who are less likely to adhere to asset
allocation.
Investor’s not looking to invest in different
funds.
4. Benefits of balanced fund
In built risk management
Automatic rebalancing
Mix of strategiesMix of strategies
Better risk adjusted returns
Regular monthly income through monthly
dividend option
5. MIP v/s Balanced fund with monthly dividend
MIP-(MD) Balanced Fund (MD)
Date of Investment 23/Jul/2010 23/Jul/2010
Investment Amount (Rs) 10,00,000 10,00,000
Rs. Rs.
Dividend for FY 10-11 41,686 73,223
Dividend for FY 11-12 55,581 104,331Dividend for FY 11-12 55,581 104,331
Dividend for FY 12-13 55,581 77,348
Dividend for FY 13-14 63,300 66,044
Dividend for FY 14-15 65,616 73,778
Dividend for FY 15-16 (Pro rata) 55,581 89,248
Total Dividends (Rs) 3,37,345 4,83,972
Current Value as on 8th Jan 2016 (Rs) 10,65,308 12,78,083
Total Profit/ Loss (Rs) 4,02,652 7,62,055
Over all XIRR 7.35% 13.23%
6. Dividend Yield
MIP-(MD) Balanced Fund(MD)
Date of Investment 23/Jul/2010 23/Jul/2010
Investment Amount (Rs) 10,00,000 10,00,000
Rs.
Dividend
Yield (%)
Rs.
Dividend
Yield (%)
Dividend for FY 10-11 41,686 5.55 73,223 10.95
Dividend for FY 11-12 55,581 5.68 104,331 11.59Dividend for FY 11-12 55,581 5.68 104,331 11.59
Dividend for FY 12-13 55,581 5.58 77,348 8.58
Dividend for FY 13-14 63,300 6.51 66,044 7.40
Dividend for FY 14-15 65,616 5.98 73,778 6.06
Dividend for FY 15-16 (Pro rata) 55,581 6.76 89,248 7.97
Total Dividends (Rs) 3,37,345 6.01% 4,83,972 8.76%
Current Value as on 8th Jan 2016 (Rs) 10,65,308 12,78,083
Total Profit/ Loss (Rs) 4,02,652 7,62,055
Over all XIRR 7.35% 13.23%
7. Taxation
Balanced funds invest more than 65% in
equity and hence it is treated as equity-
oriented fund for taxation purpose.
Dividend income is tax free.
Capital gains after holding the fund for more
than one year are long term capital gains and
hence tax free.
8. Suggested Schemes
Following are suggested balanced funds:
Scheme Name
Latest
NAV (Rs)
Annualized CAGR AUM
(Rs. Cr.)
Asset Allocation
1 Year 3 Years 5 Years Equity Debt
Returns are as on 8th Jan 2016
Tata Balanced Fund 166.43 5.36 18.46 14.76 5,380 74.17 20.27
HDFC Balanced Fund 105.77 0.96 17.61 13.89 4,910 68.19 26.36
ICICI Pru Balanced
Advantage Fund
25.64 4.48 13.69 13.11 10,160 65.34 32.74
9. Contact us…
For any queries, please contact us on the below
details:
Email: mfcustomercare@ventura1.comEmail: mfcustomercare@ventura1.com
Tel : +91 22 6774 7577 / 6754 7046
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