I am looking to invest in one of these two mutual funds. Can you please explain the difference between these two?
a. ICICI Prudential Balanced Fund-Direct Plan
b. ICICI Prudential Balanced Advantage Fund- Direct Plan.
—Kailash Shrivastava
Both these funds are from ICICI Prudential Asset Management Co. Ltd and can be categorized as equity-oriented hybrid funds, which are also known as balanced funds. Such funds invest at least 65% in domestic equity holdings and the remaining in cash or debt instruments. This level of investment in domestic equities ensures that the investments in these funds are eligible for a lower period of holding (1 year) to qualify as long-term capital gains (and thus be exempt from taxation).
