June 07 , 2012
As the name suggests, Balanced mutual funds hold a balance of equity and debt in their portfolio. As the name does not suggest, they are somewhat biased towards equity and hold a minimum of 65% in equity (and possibly even more). Other types of funds in India include equity funds, monthly income plans (MIPs), debt or income funds, gold funds, etc.
To wit, this is a lazy investor's fund. It spares you the trouble of thinking about asset allocation, risk and other incomprehensible jargon, and does some of that for you. On a more serious note, this is a good option if you find yourself really short on time commitment to your personal finances. If you are a little more committed, we would rather advise other options.