Balanced Funds – which one among these to choose?

POSTED BY vazzy ON December 18, 2010 4:21 pm COMMENTS (5)

Which of the following balanced funds can we select for a time horizon of 3 to 5 years with moderate risk appetite for average to above average returns?

1.  DSPBR Balanced.

2.  HDFC Prudence.

3.  UTI Balanced.

4.  Reliance Regular Savings Fund – Hybrid.

5. HDFC Balanced.

Tx in advance.

5 replies on this article “Balanced Funds – which one among these to choose?”

  1. Atul says:

    Hi Vazzy,

    Agree with Manish comments.

    What is the return and risk taking you are looking at? Please look at the portfolio and sector exposure of the Balanced funds.Look at the historical returns, corpus size, Fund Manager, Frequency of Portfolio churn out etc.

    As per my view HDFC Prudence and DSPBR Balanced looks good. Just to make sure we do not put all eggs in one basket (AMC)

    Regards

    Atul

  2. rakesh says:

    HDFC Prudence for me. I have been investing since the last 3 years and have got good returns.

    Rakesh

  3. Elaya Kumar S says:

    Yes. The analogy given by Manish is on the mark. But the question does not ask for the best funds. In mutual fund terminology, there is no guarantee that the past performance will be maintained in the future. The questioner gives the time horizon – specifically for 3 to 5 years. Based on the past performance and consistency, (though there is no assurance that it would be maintained in the future) HDFC Prudence followed by DSP BR would be best bets.

  4. Vazzy

    I will give you an analogy which will help you , suppose there is a class of 500 students, and you have a list of top 5 students based on the last exam, now you are asking which one out of those is the best and will perform best out of those 5 students in next 10 exams .

    Can you tell the answer ? NO ! .

    The reason is there is almost no different between those , one who came 1st this time is not neccesserily best and the one who came 2nd this time is not exactly 2nd best. All of them are almost of same caliber . Its just a matter of timing and luck that some of was Rank 1 and other was rank 2nd or 5th .

    What you will have to do is just choose any of them and trust them well and get the best out of those . Dont judge them on some small parameter on very short run , its of no use and will just waste time .

    In the same manner out of hundreds of mutual funds in some category , dont try to choose the best out of “top 5” or “top 10” . Its of no use . There is nothing like “Best” in mutual funds . What is on top today will not be on top tomm .

    Manish

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.