A Balanced Mutual Funds is a type of mutual funds in India. This type of fund invest on the securities like equities, bonds, and cash market. The asset allocation of this fund resembles like 70% in equity and 30% in bonds.
Balanced funds are also known as Hybrid funds.
Equity are stocks of public companies that are traded in secondary market of stock exchanges. These companies share prices tends to grow high as the earning and profit hikes up.
Yet, these securities are clubbed with risks, that could shrink your investment principles.
Bonds are usually the debt instrument from Government, corporate companies, PSU banks, etc.
These bonds tends to yield a better return than fixed deposit, and the income are very stable, and associated with low risk,