With equity indices scaling new highs, it is the under-rated balanced funds which are in demand with investors looking for a piece of the stock market action. To some market experts, this trend reflects the concerns investors have about expensive valuations.
The Sensex and Nifty have rallied over 22 percent so far this calendar, as investors are betting on revival in economic growth and an uptick in corporate earnings.
Typically, balanced funds buy a combination of equity shares and fixed income instruments and provide both income and capital appreciation while avoiding excessive risk. These funds are suitable for investors who have low-risk appetite.
