In a balanced fund, is there any way I can increase my debt portfolio as equities are giving poor return now?
Balanced funds typically maintain an allocation of between 65% to 75% to equity and the rest in debt. The minimum 65% allocation to equity is to ensure that the fund qualifies for equity taxation. Further, the discretion to vary the allocation lies with the fund manager based on her market views. As an investor, in case you would like to manage the asset allocation you could invest in a mix equity funds or shares or ETFs, debt, etc. and rebalance the portfolio according to your views. But you should also consider the cost-benefit implications including transaction costs, taxation, etc. of frequent re-balancing. An annual review and re-balancing (if required) of one’s portfolio is normally considered adequate.
