FT India Balanced Fund

FT India Balanced Fund is managed by Mr. Anand Radhakrishnan, Anil Prabhudas, Sachin Padwal-Desai & Umesh Sharma. The scheme seeks to achieve long-term capital appreciation with stability of investment and current income from a balanced portfolio of high quality equity and fixed-income securities. New investors can safely skip this fund. If you have already invested, keep a close watch on its performance.

Where does FT India Balanced Fund invest your money?

FT India Balanced Fund is a hybrid fund which invests your money in both equity securities and debt securities. It has more than 71.09% exposure to equity and 29.65% exposure to debt and close to -0.74% exposure to cash and cash equivalents. Its equity portion has multi cap orientation which means most of your money will be invested in stocks of large, medium sized and small sized companies. FT India Balanced Fund has 61.98% exposure to large cap companies 31.14% exposure to mid sized companies and 4.93% exposure to small sized companies.

Its debt portion has allocation in corporate debentures and government securities. It currently holds close to 1% of its assets in cash and equivalents such as T-bills, banker’s acceptance and money market instruments.

Suitable for what?

The following needs if occurring between 3 and 5 years:

  • Child's education
  • Marriage
  • Home Purchase
Not suitable for what?
  • Long term needs
  • Creation of wealth
How has FT India Balanced Fund performed in the past?

If you had invested Rs 1 lakh when the fund was launched in Dec 1999, your value of investments would be around Rs 5.47 lakhs. If you had invested Rs. 1 lakh for 5 years, you would have around Rs. 1.35lakhs. The fund’s performance has been similar to other funds in this category. It has been giving around 6.28% returns for those who have stayed invested for 5 years.

Assume you had invested Rs 10,000 every month in FT India Balanced Fund through SIP since inception today you would have around Rs 7.80 lakhs.

How will FT India Balanced Fund perform in the future?

Needless to say no one can predict the future of markets. We have firm belief in the future prospects of the Indian economy. If the Indian economy grows at 9% then the leading companies tend to do well. When the companies do well their stock prices follow their performance. So if you expect the economy to grow at 8% then you can expect top performing mutual funds to give you returns in excess of 14%.

Mutual fund schemes that have exposure to mid-sized companies tend to show results when their bet on few companies comes true. We advise you to avoid too much of star gazing and future prediction. Be reminded that equities are one of the asset classes that have the potential to beat inflation. Your aim for core portfolio should be to beat inflation.

Our recommendation for fresh investment
Not Recommended
Our recommendation for existing investment
When to exit?

Withdraw when your goals are close to achievement. Do not remove the money when the markets go up or down. Do not panic. Stick to your goals.

How frequently you need to monitor the performance?

Once you invest in the fund do not get into the habit of checking the NAV daily or monthly. Review the performance once a year. Too much attention is not good.

What are the charges applicable?

A onetime fee of Rs 100 is charged on investments over Rs 10, 000 made through distributors. If you are a first time investor in mutual funds an additional Rs 50 is charged to cover KYC expenses. This is deducted from your investment and can be skipped if you buy directly from the mutual fund via their website or offices.

Exit load of 1% is charged if units are redeemed within a year from the date of allotment. No exit load applies for units withdrawn post one year. Expense ratio of FT India Balanced Fund is 2.53%. This is charged to recover the fund management company’s expenses on securities’ transactions, commissions, registrar fees, etc. Your mutual fund returns will be total returns less expense ratio.

What are the tax implications?

The returns in an equity mutual fund are absolutely tax free, provided you do not withdraw within 1 year.

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