Query Answer

Which are the best performing balanced mutual funds schemes

I want to put RS 10 Lakhs as lump sum in balanced funds for 10 years or more. My aim is to create long term wealth and therefore I am ready to take adequate risk. I have some idea about balanced funds but now-a-days market is near its lifetime high. So is it advisable to put 10 Lakhs in lump sum? Is investment in the balanced funds good also at higher market level?

Oct 10, 2017 by Mohan, Trichy  |   Mutual Fund

We are happy to note that you have a long term investment horizon for investing in mutual funds. Investing in mutual fund equity and balanced funds are all about long term investing as you benefit from compounding from the best investment asset class.

Yes, markets are at all time high level and if experts are to be believed then we are in the middle of a long term bull run. Therefore, you can invest in balanced funds even in lump sum as your investment horizon is 10 years.

However, if you are not very confident and want to play safe the entire lump sum of Rs 10 Lakhs can be invested in liquid funds and from there you can transfer a fixed amount every week through STP in the balanced funds of your choice over 12 months period. This might help you in rupee cost averaging of the unit prices if the markets remain choppy.

As you may know Balanced funds are very good option as they invest in both, upto 60-65% in equities and the rest in debt instruments. Balanced Funds are suitable for investors with moderately high risk appetite with investment horizon of minimum 5 years.

Some of the top performing balanced mutual funds are - ICICI Prudential Balanced Fund, SBI Magnum Balanced Fund, DSP BlackRock Balanced Fund and HDFC Balanced Fund.

You can check the comprehensive list of top performing balanced funds from here

Hope the above helps! Thanks for writing to swarajwealth Investment Advisors.

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