Regret investing in balanced funds? Adopt a suitable exit strategy

When shifting, try to minimise the tax burden arising from this step

Balanced funds, also known as equity-oriented hybrid funds, were investors’ favourite investment category in 2017. But they appear to be losing favour with investors, as is evident from the 31 per cent decline in their sales in February compared to the previous month. This decline has been triggered primarily by the imposition of 10 per cent dividend distribution tax (DDT) in the Budget, which will come into effect from April 1. The stock market downturn has also contributed. Existing investors need to re-examine their initial reasons for investing in these funds and then if need be, adopt a suitable exit