Investment in equity and mutual funds have shown incredible growth in the past few years. One can make handsome returns by investing in the stocks and mutual funds schemes. Since mutual fund schemes have a diversified portfolio, it is an ideal investment avenue for investors who want to play safe.
There are numerous types of mutual funds and one such type of mutual fund is balanced mutual funds. A balanced mutual fund offers the benefit of diversification by allowing you to invest in multiple asset classes i.e. debt and equity. This combination of investment not only helps you earn short term income but also build long term wealth.
In this article, we will walk you through the list of best balanced mutual funds that you may consider investing in. We will also learn the meaning and advantages of investing in balanced mutual funds.
Let us first learn the meaning of a balanced mutual fund.
What is a Balanced Mutual Fund?
A balanced mutual fund is also called hybrid mutual fund. These mutual funds invest its assets in debt instruments and equities to generate good returns and reduce investor’s risk. These mutual funds are good for investors who have a conservative approach and are looking for fixed returns. Balanced mutual funds typically invest 50% to 70% of their portfolio in the stock and the remaining is invested in bonds and other instruments.
Before investing in top balanced mutual funds you must be very careful. Below is the list of best balanced mutual funds 2019 that you may consider for investing for long term.
List of Best Balanced Mutual Funds 2019
Let us now learn the advantage of investing in the top balanced mutual funds.
Advantage of Investing In The Top Balanced Mutual Funds
The biggest advantage of top balanced mutual funds schemes is that they offer diversification. The combination of debt and equity makes them less vulnerable and risky to market volatility. The debt part of the fund ensures that the investor will get an assured fixed return while the equity part is for continuous capital appreciation. Therefore, while making an investment in top balanced mutual funds, the investor must consider the combination that is offered in the scheme.
Another benefit of investing in balanced mutual funds is that it offers the benefit of rebalancing. In situations where the equity markets are overvalued as compared to debt markets or otherwise, the fund manager has the freedom to shift between the asset classes.
Since mutual funds offer many tax benefits, let us now learn about the tax implications in the case of balanced mutual funds.
Tax Implications for Equity-Oriented Balanced Funds
The balanced mutual funds which have an exposure to equity of 65% or more fall under the equity asset class for taxation purpose. For the gains that are booked within a year of the purchase of equity-oriented balanced fund, short term capital gain tax at the rate of 15% is applicable. When these funds are held for long term i.e. more than 12 months, tax at the rate of 10% is applicable on the gains exceeding Rs. 1 lakh.
Tax Implications for Debt-Oriented Balanced Funds
The debt-oriented balanced funds are taxable just like any other debt funds. If the debt-oriented balanced funds are held for a period of 36 months or more, long term capital gain tax is applicable. On the other hand, if these funds are sold with short term capital gains, it is taxable at 20% with the benefits of indexation.
From the above taxation implications, it is clear that the equity-oriented balanced funds have a tax advantage over the debt funds. Investing in one of the top 5 balanced mutual funds will reap you handsome returns in the long run along with tax benefits.
The Bottom Line
Since balanced mutual funds invest in both debt and equity, they are an ideal investment option for people looking for the best of both worlds. Investing in balanced mutual funds ensure capital appreciation as well as minimise potential risks. Therefore, retirees and low-risk tolerant investors especially invest in balanced mutual funds. These mutual funds help to fight inflation and generate income to supplement current needs.
Whether you are a beginner or a seasoned investor, you can contact IndiaNivesh Ltd. for assistance in investing in the top 5 balanced mutual funds.
Disclaimer: Investment in securities market / Mutual Funds are subject to market risks, read all the related documents carefully before investing.
Best Shares to Buy for Long Term Investment in India
Stock market is one of the popular investment avenues where you can make huge wealth in the long run. Over the years the Indian stock market has given incredible returns to the shareholders. There are many top shares to buy for long term which have the potential to grow your money. If you make long term investment in the stocks of the right company, apart from the price appreciation, you enjoy many benefits like dividends, bonus shares, preferential shares, etc. However, there are many aspects that you must consider before making long term investment in a stock. Some of the factors include future growth, debt to equity ratio, market’s condition in the future, etc. So, if you are planning to invest for a longer horizon, we have made a list of the few top shares to buy for long term success.Best Shares To Buy In India For Long Term • Aditya Birla Capital Ltd.Aditya Birla Capital Ltd. has a diversified business model that involves life insurance, mutual funds, home finance, etc. The diversity of the business protects it from the slowdown in one particular sector. This leads to good performance in the form of consistent revenue and profitability. The wide and diverse business of the company ranks it among the best shares to buy today for the long term. At present, the company has a market capitalisation of Rs. 3,645.75 crores. • Can Fin Homes Ltd.Can Fin Homes Ltd. is one of the well-performing finance companies of India. The strong financial books provide a good cushion to the company even in the economic slowdown. The reliable management of the company ranks it among the best shares to buy in India for long term. The company is also not severely affected by frauds and crisis in the NBFC sector. The current market capitalisation of the company is Rs. 4,948.01 crores. • Coal India Ltd.Coal India Ltd. is one of the leading companies in the energy sector. The company has a market capitalisation of Rs. 125,565.59 crores. Today, this company is the single largest coal producer in the world. The company operates through 82 mining areas along with 7 wholly-owned coal producing subsidiaries in India. Numerous projects are already in the pipeline and order book is also very strong. Going ahead the company shall continue to fulfill the growing needs of the coal demand across the globe and remain the leader of the market. Therefore, when you think of shares to buy for long term, Coal India Ltd. is a good option. • Dr Lal Pathlabs Ltd.Dr Lal Pathlabs Ltd. is one of the good shares to buy for long term. The company functions in the healthcare sector and has a market capitalisation of Rs. 8,915.89 crores. The company owns top pathology labs in India. With quality manpower and experts, they remain one of the top players in this segment. The company has over 1,000 field executives with more than 6,000 pick up points across the country. What makes it the best shares to buy today for long term is that the company is expected to perform well and cover a good market share in the long term. • Bharat Electronics Ltd (BEL)Bharat Electronics Ltd (BEL) is in the consumer durables sector and has a market capitalisation of Rs. 22,964.89 crores. BEL is one of the leaders in supplying specialized electronic equipment to the Indian Defence Services. Apart from the defense sector, the company has a significant presence in the civilian market as well and supplies numerous products. The list of items produced by the company is long as it caters to many different sectors of the economy. Going ahead the demand for its products is expected to remain robust and the company shall grow well. Bharat Electronics Ltd (BEL) definitely falls in the category of good shares to buy for long term. • NBCC (India) Ltd.NBCC (India) Ltd. functions in the real estate sector and has a market capitialisation of 6,192 crores. Founded by the government of India, the company holds the status of Navratna CPSE. The company has a significant presence in the Project Management Consultancy (PMC), Engineering Procurement & Construction (EPC) and Real Estate Development. With the slow down in the real estate segment, the company is trading at cheaper valuations. What makes its shares to buy for long term is the expected recovery in the economy and faster execution of orders by the company. • RBL Bank Ltd.RBL Bank Ltd. is in the banking sector with the market capitalisation of Rs. 15,960.34 crores. This bank has been rated as one of the best mid-sized banks in India. RBL Bank is one of the fastest-growing private banks of the country and it is continuously expanding its presence across the different states. Currently, the bank has 332 branches in India. In the future, the customer base of the bank is expected to grow significantly. In addition, the reliable management of the bank makes it the best shares to buy in India for long term. The above mentioned are few of the shares to buy for long term. Since there are many companies listed on the stock exchange, it is important to know the different criteria that you need to consider before purchasing stocks for the long term. To assist you in selecting the best shares to buy in India for long term, we have listed down certain points that you may consider.How To Choose Stocks For The Long Run?• FinancialsThe first and foremost thing that you need to do before purchasing a stock for the long term is to analyse the financials of the company. You must check the company’s debt levels, the cash reserves available, provisions made, etc. By understanding the financials of the company, you would come to know if the company will be able to survive in the long run if recession hits the market. • Future GrowthIt is always good to invest in those businesses which show the signs of future growth. Future growth has a direct impact on the profitability of the company. If it is expected that the demand for a company’s products or services would grow in the coming years it would lead to higher profits. Being a shareholder in a company that shows consistent growth not only gives you returns in the form of share price appreciation but also in the form of a dividend, bonus shares, etc. • Government PolicyThe policies of the government have a direct effect on a company. If any sector is expected to receive boost and support from the government then the shares of companies functioning in that sector can be considered for long term investment. While on the other hand, if any sector is going to face many hardships from the government then investment in such companies must be completely avoided. • Competent Management/ Corporate GovernanceWhen you are looking for shares to buy for long term, it is always advisable to look at the quality of the management. A company with good management must be the first choice for any investor. This is because good management always ensures that ethical practices are followed in the company and there is no fraud. Therefore, invest for the long term in those companies where no one can question the credibility of the management. The above mentioned are a few things to consider before purchasing stock for the long term. In India, you can invest in the stock market only if you have a demat account. If you are a beginner and want to invest for the long term in the stock market, you may consider opening a demat account with IndiaNivesh Ltd. Our in-house experts and analysts help beginners and seasoned investors by recommending the long term shares to buy in India.
Commodity Investment - How to Invest in Commodities
Have you ever thought about how the various goods and products come into existence? What goes into their manufacturing? Every product or good we use is made up of some of the other commodity. Commodities are the raw materials that are used to produce or manufacture other products. Commodities are of various types like agricultural commodities, energy, metals, etc. The prices of commodities keep changing which affect the price of end products as well. Like for example, rising Brent crude prices will lead to an increase in the prices of petrol and diesel. Since the prices of the commodities keep changing you can consider trading in them and take advantage of the price volatility. In this article, you will learn about how to invest in commodities, the best commodities to invest in and everything related to it.But before learning how to invest in commodities, let us learn where you can trade in the commodity market.Where Can YouTrade in The Commodity MarketInvestment in the commodities market in India can be done through the commodity trading exchanges. At present, there are three commodity trading exchanges in India, they are as follows: National Commodity and Derivatives Exchange Ltd. – NCDEX Multi Commodity Exchange of India Ltd. – MCX Indian Commodity Exchange Ltd. – ICEX Out of the above mentioned exchanges, MCX and NCDEX are the most popular among the traders. If you want to trade in the commodities like metal, energy, etc., you can trade through MCX and if you want to trade in agricultural commodities, you can trade through NCDEX. ICEX is known for trading in Diamond.The commodities in India can be classified into three major categories. They are as follows: Agriculture – Maize, Soya, Spices, Pulses, Fibres, Rice, Wheat, Guar, Castor, etc. Metals – Gold, Silver, Platinum, Aluminium, Copper, Lead, Nickel, Zinc, Steel, etc. Energy – Crude oil, Natural gas, etc. The above mentioned are the exchanges and types of commodities where you can invest your money. Let us now learn how to invest in commodities.How To Invest In Commodities In IndiaThe beginners entering the market always have the question in their mind,“how to invest in commodities in India?” In this section of the article, you will learn about the various ways through which you can make an investment in commodities. Invest In Physical Commodities The easiest way to invest money in the commodity market is by physically purchasing it. The purchase is made in the hope that the price of the commodity will rise and you will be able to sell it at a higher price. One of the best commodities to invest in India and hold it physically are precious metals like gold, silver, etc. Invest In Commodity Futures Market Futures contract allow the trader to buy or sell a commodity at a set date and at a set time through contracts. The futures contracts trading is for those people who want to play with the volatility of the commodity prices and make massive gains. Investment in Commodity Related Stocks To avoid the risks of future trading, you can purchase the shares of companies related to commodities. By investing in such stocks, you can take advantage of the commodity price movement and enjoy the returns in the form of price appreciation of the share price. Invest In Exchange Traded Funds Exchange Traded Funds (ETFs) are the funds that comprise of future contract and allow you to invest in them directly. ETFs can be traded just like stocks and you can hold them without the risk of holding any futures contracts. Invest in Mutual Funds No one in the market can tell you what a good time to invest in commodities is. To overcome this problem, you can start a systematic investment plan (SIP) in those mutual funds that deal in commodity related stocks. To invest in the commodity market through any of the commodity exchanges you need to open an account with the broker. In this section of the article, you will learn about how to open a commodity account.How to Open a Commodity Account The first step towards investing in the commodity market in India is opening an account with a exchange registered broker. The selection of the broker must be done with utmost care. Take the feedback from the people about their services and credibility. Select the broker that gives you the best services at the most affordable rates. The next step is to fill the account opening form with the commodity broker. Along with the form, submit the copies of necessary documents that are needed to open an account. The documents include PAN card, address proof, ID proof, income statement and cancelled cheque. After submission of the documents, the broker will carry out verification of the information submitted by you. On successful verification of the information, you will be provided with the account number and password. As soon as your commodity trading account is opened, you must deposit the margin money. The margin money is equivalent to 5% to 10% of the contract value. After account opening, you can trade at any of the commodity exchanges. Let us learn about how you can trade on MCX, which is one of the most popular commodity exchanges in India. Trading on MCXJust like BSE and NSE provides you with the platform to trade in stocks, similarly, trading in the commodities market can be done on the MCX (Multi Commodity Exchange of India Ltd.). In fact, you can find the best commodities to invest in India on MCX. The MCX broker acts as an intermediary between the commodity exchange and commodity trader. On this exchange, you can trade in metals, energy and agricultural commodities. All you need to do is simply place the order with the broker over the phone or place it online using the mobile application. MCX was earlier regulated by Forward Market Commission (FMC) which later got merged with the Securities and Exchange Board of India (SEBI) in the year 2015.Commodity trading account is the primary requirement for making an investment in the commodities market. Whether you are a beginner or a seasoned investor looking to open a commodity trading account, you can consider IndiaNivesh Shares and Securities Pvt. Ltd. We advise our customers about the good time to invest in commodities, the best commodities to invest in, etc. Contact us to enjoy our hassle-free services. Disclaimer: Investment in securities market / Mutual Funds are subject to market risks, read all the related documents carefully before investing.
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