Many conservative investors over the past many months had warmed up to balanced funds, a hybrid of equity and debt funds. Heavy marketing of ‘regular' dividends that beat the interest received from bank Fixed Deposits was a big ‘pull'. Plus, the existence of debt assets in balanced funds meant that when equities fell, their money would be cushioned against any hard landing.
But recent market volatility and tax on dividends of funds appear to hit sentiment. DNA Money talked to experts to understand the way ahead for balanced fund category, which oversees Rs 1.8 lakh crore worth assets.
Falling inflows