Balanced mutual funds, or balanced funds, usually are the “go to” option for most small investors. Apart from the ease of investing, the commonly held understanding is that they are safe and provide decent returns.

However, both these aspects may not be true of all balanced funds to the same extent. The safety and performance of these funds depends a lot on their composition, and how their components behave in the market.

Let us understand these.

Read the full article published originally on Financial Express: Your Money: Know how balanced mutual funds operate