Balanced funds Portfolio
Allocation
Advantages Drawbacks Risk-return profile Suitability for investors Preferred investment duration
Debt-oriented funds Investment below 65% in equities. They are less risky as compared to equity-oriented balanced schemes. Limited opportunities of capital appreciation due to less involvement in equities. These funds are less aggressive and hence offer lower risk and lower return than equity-oriented funds. Suitable for those, who want to invest in moderately risky fund More than one year.
Equity-oriented funds Invest at least 65% in equities, remaining in debt. A balanced fund with higher allocation to equities.

Have the potential to generate higher returns than debt oriented balanced funds.
Higher risk due to equity-market orientation. Due to investment in debt market, they are less aggressive than equity funds. Suitable for those, who want to invest in moderately risky fund with higher equity allocation. Investment in these funds should be made for long term, say 2-3 years.