Top Balanced Funds Over 10 years 

Nowadays, investing in balanced funds is one of the best ways to expand your investment portfolio. These funds are invested across debt and equity instruments to profit good returns. The investors are also receiving maximum returns from both sections. Balanced funds ensure the appreciation of capital along with generating income and fight with the possible risk simultaneously.

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Balanced Funds in India 

Balanced funds are the type of funds that invest equally in both debt and equity. Balanced funds, be it a Unit Linked Investment Plan (ULIP) or mutual funds, both work to expand investments overstocks and income (fixed) instruments such as government securities and bonds. ULIP plans come with two benefits – investment and insurance in which a section of your premium amount is used for the insurance coverage and the remaining section is invested in funds of your selection. In this, you can choose equity, debt, or a combination of both to invest, and the combination of both is called Balanced Funds. 

It is a one-stop investment solution that is regulated by fund managers. These funds are suitable for those who have a reasonable risk-taking appetite. The top balanced funds majorly invest around 50% to 70% in equities and the remaining in the debt. 

If the equity exposure of a balanced fund is more than 65 percent, then it is an equity-oriented fund whereas if it is less than 65%, it is a debt-oriented fund. It is a smart decision to go for balanced funds especially for those who want a maximum appreciation of capital and can take some amount of risk. These funds are right for the stakeholders who have a medium risk-taking appetite because they not mainly invest for growth but also want some sort of safety. Thus, they consider balanced funds and prefer not to go to equities only. 

Like any other investment plan, the investor needs to research the type of fund before investing in it. Here we have discussed the features, benefits, and the top balanced funds in India that one can opt for a smooth investment journey. 

Top Balanced Funds in India           

The below table illustrates the top balanced funds over 10 years: 

  1. Top Performing Large Cap Funds 

    Large-cap funds are the equity funds that invest a larger proportion of their assets (total) in companies having a large capitalization of the market. They are highly-reputed companies with a good record of maintaining wealth for their investors for a long time. As per SEBI, investing in top large-cap companies according to market capitalization is a smart and less risky decision. 

    Name 

    5-year Returns (in%)

    10-year Returns (in%)

    Bharti AXA Life – Grow Money Plus

    17.13

    16.11

    Bharti AXA Life – Grow Money Pension Plus

    16.97

    16.05

    Tata AIA Life- Life Large Cap Equity Fund 

    17.81

    15.96

    Bharti AXA Life – Grow Money

    16.78

    15.94

    Bharti AXA Life – Grow Money Pension

    17.16

    15.93

    Average 

    13.46

    13.4

  2. Top Performing Mid Cap Funds 

    Mid-cap fund majorly invests in companies having medium market capitalization i.e., in between Rs. 500 Cr. To Rs 10 Cr. The company’s size impacts the returns and the risks associated with it. 

    Name 

    5-year Returns (in%) 

    10-year Returns (in%)

    Tata AIA Life – Whole Life Mid Cap Equity Fund 

    16.63

    20.19

    Aditya Birla Sun Life – Individual Multiplier Fund 

    14.09

    17.13

    Max Life High Growth Fund 

    18.60

    16.71

    Reliance Life Midcap Fund 2

    12.28

    16.24

    Bajaj Allianz Life – Accelerator Mid Cap Fund II

    13.86

    16.17

    Average 

    13.10

    15.68

  3. Top Performing Multi-Cap Funds 

    Multi cap funds are the diversified equity funds that mainly invest in the company’s shares with different market capitalization. These investments are performed in different proportions to meet the investment goal of the fund. 

    Name 

    5-year Returns (in%)

    10-year Returns (in%)

    Tata AIA Life- Tata AIA Top 200

    20.19

    18.20

    Tata AIA Life- Super Select Equity Pension Fund 

    17.04

    17.15

    Tata AIA Life Super Select Equity Fund 

    16.76

    16.93

    Tata AIA Life Select Equity Fund 

    16.89

    16.77

    Bharti AXA Life – Growth Opportunities Pension Plus Fund 

    17.05

    16.74

    Average 

    13.64

    14.16

    *Policybazaar does not endorse, rate, or recommend any particular insurer or insurance product by an insurer or any other financial product. 

Who Should Invest in Balanced Funds? 

The balanced fund portfolio is comprised of securities across both instruments – equity and debt. So, anyone seeking to receive exposure towards a balanced portfolio should consider investing in this fund. The fund managers manage balanced funds and also tries to balance the ratio of risk-reward. Thus, investors who want to diversify their portfolios should consider investing in these funds. 

These funds are suitable for individuals having a limited risk appetite as they can easily manage the loss experienced to some level. If investors are with high-risk appetites, they are well-proficient with managing equity-oriented investments. If an investor wants to invest in long-time ULIP benefits and also wishes to control the risk that is incurred, then balanced funds are a smart decision for them. 

Process Of Balanced Funds in India 

As we have already discussed above, that balanced funds have a pre-specified proportion on debt and equity funds instruments. For example, In ULIP, the balance funds can be in a ratio of 50:50 in equity to debt allocation. They also have the option to go 10% over the set limits based on the market performance. This simply means, that if any market fluctuations occur and the fund manager who regulates the fund forestalls about losses, then your investment can be shifted to debt funds up to a maximum limit of 60 percent of the assets in total. Hence, the fund manager manages the investment across different categories. In the case of other investment options than balanced funds, you will have to take care of all the market fluctuations and also have to make switches from equity to debt and vice versa. It will be a time-consuming process. 

Advantages of Balanced Funds 

  • One of the major advantages of investing in a balanced fund is that it provides an option to switch the investment from one type of fund to other. Like you can easily transfer units partially or fully between the different fund options – debt, equity, equity to debt, or debt to equity. 
  • These funds also provide good returns by investing 35-% - 40% of the assets in the fixed income option. 
  • It offers market-linked returns. 
  • It is ideal for conservative investors who are ready to take moderate risks. 

What are the Risks Involved in Balanced Funds? 

Since the balanced funds are invested in debt and equity instruments, so they importantly carry all the risk that equity and debt have. The following risks of equity instruments are attached with the balanced funds – Market risk, volatility risk, and concentration risk. Whereas the debt instruments carry credit and internal rate risk. 

Final Word 

Investors who are planning to invest for a long term such as a child’s higher education, wedding, buy a house, and do have a high risk-taking appetite, can choose to invest in the balanced funds in India. In ULIP balanced funds, you can easily switch funds from one to other fund options i.e., from debt to equity or equity to debt based on the market performance. As we have already discussed the top balanced funds over 10 years, so based on that you can select your fund as per your risk appetite. 

*All savings are provided by the insurer as per the IRDAI approved insurance plan.
*Tax benefit is subject to changes in tax laws. Standard T&C Apply
~Source - Google Review Rating available on:- http://bit.ly/3J20bXZ
^^The information relating to mutual funds presented in this article is for educational purpose only and is not meant for sale. Investment is subject to market risks and the risk is borne by the investor. Please consult your financial advisor before planning your investments.

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