With an increase in AUM (assets under management) of balanced funds in the recent months, it can be inferred that domestic investors are slowly getting comfortable investing in this category of mutual fund. In this column, we will explain why balanced fund investments are on the increase in the mutual fund category and should from a part of all investment portfolios.
What is balanced mutual fund?
Mutual funds pool in investors' money and invest in equity, debt and other instruments prescribed by the fund mandate. As the name suggests, a balanced fund’s mandate is to balance out the risk and reward quotient by investing in a mix of stocks and bonds.
