It's no exaggeration that the seemingly unstoppable, booming equity
markets took a volte-face after being inflicted by the worst ever
crisis since Great Depression. Volatility has been the order of the stock
markets these days and investors got to live with it. Needless to say, investing in
mutual funds is a lot safer alternative than investing directly in the stock market.
It ensures some safety to the investor's money and provides impressive
returns. Though risk-averse investors have been sheltering relatively
safer mutual funds, undeniably, they are also not completely devoid of risks and
violent market fluctuations. Balanced mutual funds aim to address these
concerns in their unique way by providing relatively high and stable returns.
Often these funds provide decent returns with low volatility and best suits for
the moderate risk taker. Nevertheless, as fund managers use their own
discretion while allocating resources, typically, much of the success of the fund
depends on the prudence of the fund manager.
Balanced mutual fund, one of the various types of mutual funds available
in the market, is a safe investment which can give the best of both worlds.
Cautious investors who want to get exposure to a significant amount of
equity and also look for the security of their investments can opt for these funds.
Balanced funds combine the benefits of both growth and income objectives in
a single mutual fund. It brings together the power of equities (stocks) and
the stability of debt market instruments (bonds) and offers both income
and capital appreciation while evading excessive risk.
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