Should You Invest in Tata Balanced Fund?
Balanced funds are in India for nearly two decades, and Tata Balanced Fund is among the oldest schemes in this category. It is a consistent performer in its category since its inception and has offered great earnings to the investors until now. Are you looking to buy this scheme for your portfolio? Here are the facts you must know about balanced funds to know whether they suit your requirements or not!
Balanced funds are essentially the hybrid funds with debt and equity in its portfolio. The schemes are classified into equity-oriented and debt-oriented ones as per the proportion of equities and debts. They are meant for those investors who can take moderate risk on their portfolio and want to earn consistent returns for financial stability. The major features which make the balanced fund a favourable choice are:
1.Secure Investing in Equities
Making a direct investment in equity stocks is a risky task and must be made by those who have in-depth knowledge of the market moves. By investing via equity-oriented balanced funds, the investors may take a smart and safe move in the equity market and gain substantial capital growth. The investments by balanced funds are made in such equities which either have large-cap holdings or put the money in the diversified stocks.
Inflation eats up the value of our hard-earned money, and it is quite important to make such an investment which can counter market volatility and inflation. The balanced funds have diversified investments in the debt and equity securities which provide not only income stability but ensure beating inflationary rates as well even in the uncertain situations.
3.Fulfils Income Needs
The investments in the balanced funds are made in those debt instruments which provide recurrent income. On the flip side, the equity investments are made in such securities which tend to offer growth of capital. This way, these funds offer the consistency in capital appreciation and income generation to help the investors in attaining their financial goals.
What Does Tata Balanced Fund Provide?
Tata Balanced Fund (Growth) is a growth-oriented balanced fund which has major investments in the equity stocks. The funds are invested into different sectors which involve finance, energy, construction, healthcare, technology, automobile, and engineering. These sectors offer considerable growth to the investors for earning tremendous wealth. Here are some of the features of Tata Balanced Fund for which they must be considered by the investors.
Investment Objective and Details: The investment objective of this plan is to offer income distribution along with medium- to long-term capital gains. It emphasises the importance of capital appreciation and thus aims to provide the same in the long run. The scheme is open-ended in nature and tends to offer the feasibility and flexibility of redeeming funds as per the requirement.
Performance: The returns offered by the scheme in the past demonstrate a tremendous holding of the plan in the market. It is ranked in the top-five balanced fund schemes as per CRISIL rating. The absolute annual returns of the scheme have been noteworthy in the past five years and have reached up to 49.3% in the year 2014. The annualised returns of the scheme have outperformed its benchmark being 20.30 and 17.0 percent respectively for three and five-year investments.
Portfolio Concentration: Tata Balanced Fund has a well-diversified portfolio with equity, debts and money market instruments. The various securities tend to provide their benefits to the investors to provide financial stability. The equity investments are made in the major corporates which include ICICI Bank, HDFC Bank, Infosys, HCL Technologies, and ITC being the top holdings.
Accordingly, this fund capacitates the power of building great financial future and investing in the same would be highly efficient for the investors, especially the beginners. So with this, you must have got the answer that, yes, you can buy Tata Balanced Fund for your portfolio in order to enhance the worth of your capital.