balance fund

7/29/2019 Balance Fund

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PRESENTATION ON

Balanced Mutual Funds

Sonam Verma

MBF4112032020

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BALANCED MUTUAL FUNDS

• The aim of balanced funds is to provide both growth andregular income as such schemes invest both in equitiesand fixed income securities in the proportion indicated intheir offer documents.

• These are appropriate for investors looking for moderategrowth. They generally invest 40-60%in equity and debtinstrument.

• These funds are also affected because of fluctuation inshare prices in the stock markets.

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• 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,

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There is cushion from investing in debt which createsminimum return for investors.

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• 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.

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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 gainwhereas, 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%.

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WHICH COMPANY ISSUES BALANCE

MUTUAL FUNDS

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Company SCHEME CLASS Plan Type Returns(%)

SBI Funds

Management

Pvt. Ltd

SBI Magnum Balanced

Fund

Equity

balanced

fund

Growth 10.64

ICICI Prudential

Asset

Management

Co. Ltd

ICICI prudential ICNR

balanced fund

Equity

balanced

fund

Growth 10.63

Tata AssetManagement

Ltd.

Tata balanced fund Equity balanced

fund

Growth, 10.04

ICICI Prudential

Asset

ManagementCo. Ltd

ICICI prudential asset

mgt. co. ltd

Equity

balanced

fund

growth 9.94

Birla Sun life

Asset

Management

Co. Ltd.

Birla sun life 95 fund Equity

balanced

fund

dividend 9.44

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SBI Magnum Balanced Fund

Essential

Fund category Equity - Balanced Fund

Scheme plan Growth

Scheme type Open Ended

Launch date December 31, 1995

Fund manager Mr. R Srinivasan

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SBI Magnum Balanced Fund

• NAV (RS.) 54.14

• Initial Price 10.00

• Min investment Rs. 1,000.00

• Entry load 0.00

• Exit load 1.00%

NAV RETURNS

1 month -3.06%

6 months 5.29%1 year 16.21%

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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.

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TATA BALANCED FUND

ESSENTIAL

1. Fund category Equity - Balanced Fund

2. Scheme plan Growth

3. Scheme type Open Ended

4. Launch date October 08, 1995

5. Fund manager Mr. Murthy Nagarajan

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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)

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•

NAV Rs. 92.92• Initial Price 10.00

• Min investment Rs. 5,000.00

• Entry load 0.00

• Exit load 1.00%

• NAV returns

• 1 month -2.13%

• 6 months -0.57%

• 1 year 11.63%

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