Balanced funds, which pay investors a monthly dividend, have seen their assets under management surge over the past couple of years.These funds have been able to dole out tax-free yield of 8-12 per cent, which is much higher than what fixed deposits (FDs) and debt products offer, making the former very attractive.
HDFC Prudence Fund has seen its corpus jump 106 per cent from 8,618 crore to 17,775 crore, while ICICI Pru Balanced Fund has seen its corpus rise 318 per cent from 1,773 crore to 7,413 crore and DSP BlackRock Balanced Fund has seen its assets rise 415 per cent from 611 crore to 3,152 crore.
