Balanced Fund

A mutual fund that buys a combination of common stock, preferred stock, bonds, and short-term bonds, to provide both income and capital appreciation while avoiding excessive risk. In the hybrid category, balanced funds tend to stick to a relatively fixed allocation of stocks and bonds. Actively managed asset allocation funds tend to have portfolios with a mix of stocks and bonds that responds to market conditions as perceived by the fund manager. Passively managed asset allocation, life-cycle and target-date funds generally have a stock-bond mix that changes over a lifetime, moving progressively from aggressive to more conservative structures. The purpose of balanced funds (also sometimes called hybrid funds) is to provide investors with a single mutual fund that combines both growth and income objectives, by investing in both stocks (for growth) and bonds (for income). Such diversified holdings ensure that these funds will manage downturns in the stock market without too much of a loss; the flip side, of course, is that balanced funds will usually increase less than an all-stock fund during a bull market.

Who is Eligible?

· Individuals, Minor through parent/lawful guardian.

· Foreign Institutional Investors.

· Financial Institutions and Investment Institutions.

· Non-resident Indians/Persons of Indian origin residing abroad.

· Association of Persons.

· Partner(s) of Partnership Firms.

· Societies.

· Karta of Hindu Undivided Family.

· Companies, Trusts.