Appuonline - Mutual Fund Schemes-Balanced Schemes

The portfolio of balanced schemes include assets like debt securities, convertible securities, and equity and preference shares held in a relatively equal proportion. The objectives of balanced schemes are to reward investors with a regular income, moderate capital appreciation and at the same time minimizing the risk of capital erosion. Balanced funds are appropriate for conservative investors having a long term investment horizon.

Scheme Charateristics Comparison
Types	Investment Objectives	Portfolio of Investments	Risk Associated
Balanced Funds	To generate regular income, moderate capital appreciation and at the same time minimizing the risk of capital erosion	Debt securities, convertible securities, and equity and preference shares held in a relatively equal proportion	Limited risk to principal and moderate long-term growth
Growth-and-Income Funds	Capital growth and some current income	These funds invest in companies having potential for capital appreciation and those known for issuing high dividends	Safer as compared to growth funds and riskier than income funds
Asset Allocation Funds	Capital Growth and income generation	These funds invest in financial assets or non-financial (physical) assets	Success of these funds depends upon the skills of a fund manager in anticipating market trends