PRESENTATION ON

Balanced Mutual Funds

Sonam Verma MBF 4112032020

BALANCED MUTUAL FUNDS

The aim of balanced funds is to provide both growth and regular income as such schemes invest both in equities and fixed income securities in the proportion indicated in their offer documents.

These are appropriate for investors looking for moderate growth. They generally invest 40-60%in equity and debt instrument.
These funds are also affected because of fluctuation in share prices in the stock markets.
3

 However, NAV of such funds are likely to be less volatile compared to pure equity funds,

Balanced mutual fund schemes as the name suggest invest into equities to create wealth in long term and debt instrument products to maintain stability.
Investing in this product helps to achieve your goals safely, There is cushion from investing in debt which creates minimum return for investors.

 The asset allocation of balanced mutual fund schemes varies in each product offered by an asset management company.
The ideal mix an investor should look for while investing in this product is at least 65% into equities and 35% into debt instruments.

This information is given in Key Information Memorandum of particular schemes.

TAX IMPLICATION
Balanced mutual funds are treated as equity funds for tax purposes when the fund allocates at least 65% into equities on an annual average fund amount. To create wealth in the long term an investor should continue to be invested in balanced mutual fund. The taxes applicable will be NIL for long term capital gain whereas, if an investor invests for short term in this scheme will have to pay 15% short term capital gain tax and 3% education cess which will make total taxes payable to 15.45%.
6

WHICH COMPANY ISSUES BALANCE MUTUAL FUNDS

Company

SCHEME

CLASS

Plan Type
Growth

Returns(%)
10.64

SBI Funds SBI Magnum Balanced Equity Management Fund balanced Pvt. Ltd fund ICICI Prudential ICICI prudential ICNR Equity Asset balanced fund balanced Management fund Co. Ltd Tata Asset Tata balanced fund Management Ltd. Equity balanced fund

Growth

10.63

Growth,

10.04

ICICI Prudential ICICI prudential asset Equity Asset mgt. co. ltd balanced Management fund Co. Ltd Birla Sun life Birla sun life 95 fund Asset Management Co. Ltd. Equity balanced fund

growth

9.94

dividend

9.44

SBI
Essential

Magnum

Balanced

Fund

Fund category Scheme plan Scheme type Launch date Fund manager

Equity - Balanced Fund Growth Open Ended December 31, 1995 Mr. R Srinivasan

SBI Magnum Balanced Fund

NAV (RS.) Initial Price Min investment Entry load Exit load NAV RETURNS 1 month 6 months 1 year 54.14 10.00 Rs. 1,000.00 0.00 1.00%

-3.06% 5.29% 16.21%

10

FUND IN FORMATION
AMC - SBI Funds Management Pvt. Ltd.

OBJECTIVE :- The fund aims to provide its investors growth through capital appreciation. It also plans to provide periodic income through declaration of dividends.
11

TATA BALANCED FUND

ESSENTIAL 1. 2. 3. 4. 5. Fund category Scheme plan Scheme type Launch date Fund manager Equity - Balanced Fund Growth Open Ended October 08, 1995 Mr. Murthy Nagarajan

12

FUND INFORMATION
AMC :- Tata Asset Management Ltd. Objective:- Aims to invest in equity and debt oriented securities so as to give investors balanced returns Asset (Rs. Cr):- 507 (February 28, 2013)

13

NAV Initial Price Min investment Entry load Exit load

Rs. 92.92 10.00 Rs. 5,000.00 0.00 1.00%

NAV returns 1 month 6 months 1 year

-2.13% -0.57% 11.63%

14