InvestorQ : Should i invest in balanced funds?
Rachit Mehta made post

Should i invest in balanced funds?

Shreya Karn answered.
4 years ago

Balanced funds are ideal for investors that have a moderate-risk appetite. Investors that want returns more than the traditional saving instruments but are not willing to take high-risk know to have a moderate-risk appetite. Balanced funds do the same- it invests the fund in both, equity shares and debt. As a result, balanced funds give returns more than traditional saving instruments as some portion of funds is invested in equities but the fund does not possess complete equities risk as some portion of the fund is invested in debt funds that guarantee a fixed-income at regular interval. Due to this mix feature of equity and debt, balanced funds are also known as a hybrid fund.

If you are a risk-averse person then the balanced fund is not preferred fund for you, but if you are an investor with moderate-risk appetite then as per my opinion you should invest in balanced funds.