1.Balanced Fund and balanced profit fund There are two types of hybrid funds that invest in equity and debt securities.

2. Balanced funds have almost equal allocation (minimum 40% and maximum 60%) for both asset classes whereas balanced funds have no leverage fixed guidelines And there is a facility to switch between both the asset classes.

3. In the long term, balanced fund Give more stable returns than Balanced Advantage Funds.

4. Have Balanced Funds taxed As a Debt fund, Balanced Advantage Fund can be taxed as either Equity or Debt, depending on the asset allocation at the time of redemption.

5. The expense ratio of balanced funds is generally lower than that of balanced advantage funds.

Content on this page is courtesy of Center for Investment Education and Learning (CIEL).
Contributions by Girija Gadre, Arti Bhargava and Labdhi Mehta.

Spread the love