Is balanced Fund is good for investment?

1. Is balanced Fund is good for investment? Is balanced Fund is good for investment? The balanced fund is a mutual fund investment plan which allows an investor to safeguard his profits against the risk which is exposed due to equity investments. When the investor's capital is parked in stocks, it is termed as equity fund whereas when it is parked in bonds, it is called a debt fund. The hybrid funds invest in both equity and debt funds by diversifying your investments in different proportions on the basis of market trends. These funds are categorized into two, viz., equity-oriented and debt-oriented balanced fund. An equity-oriented balanced fund gains from a healthy dose of equities and the debt portion safeguards the risk exposure to stocks and shares. If you have stepped into the world of the mutual fund just now, and don't have sufficient knowledge about the various tactics used in this industry, then you should start your investment journey with the balanced fund. If making a choice between the in equity and debt instruments troubles you, the hybrid fund provides you with the perfect shelter. This fund gives you a two-way benefit of fetching long-term returns from equity market and a periodical reward from debt and money market instruments. This is the best investment for the investors who are looking for a mixture of financial safety, income, and growth on a simultaneous basis. If you too are among those, you should invest in balanced mf. Benefits of Investing in Balanced Funds: Regular income with capital growth: This is one of the special benefits of these funds which attract most of the investor's interest. As the investments are divided into both equity and debt funds, it possesses the power of fetching long-term return with a shield of decent regular income. Re-balancing: Another advantage of this fund is that it automatically re-balances the portfolio in accordance with the market ups and downs to attain superior benefits. Equity investment with debt shield: It makes the investment safer as the investor has a cushion of debt investments against uncertain risk from equity. Capital appreciation: The equity-oriented balanced fund allows an investor to attain high capital growth as a sizable portion of around 65% of the total investment is invested in equities and related instruments. Balance funds are the best choice for the medium to long-term investors with conservative to moderate risk appetite and having the desire of regular income as well as growth in capital. The reason being is that it is the all-weather-fruit which serves the investors in various market seasons. Investment Advisor in Defence Colony Where equity investment generates income at the time of hikes in the share prices, the debt instruments provide a stable income while protecting the invested capital from equity risk.