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I need an advice in the investment of Balanced Funds

I need an advice in the investment of Balanced Funds. Can you please suggest?

Apr 21, 2016 by Sravika, Hyderabad  |   Mutual Fund

Balanced Funds are hybrid equity oriented mutual fund schemes which usually invest 65 – 75% in equities and the remaining portion in debt or money market instruments. The hybrid portfolio moderates the fund volatility to a certain degree while enabling potential wealth creation in the long term. Since at least 65% of the portfolio is invested in equity or equity related securities, balanced funds are subject to equity taxation. Long term capital gains, for investment period of more than 1 year, is tax exempt. Dividends from balanced fund schemes are also tax free. Short term capital gains, for investment periods of less than 1 year, is taxed at 15%. Dividends from balanced fund schemes are also tax free.

It is an ideal investment option for investors with moderate risk taking appetite. To have complete knowledge about Balanced Funds, we suggest reading two of our articles –

Why Balanced Funds may be the best investments for new Mutual fund investors

Top and Best 5 Balanced Funds for investment in 2016

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