Seniors seeking regular income should switch to debt funds from balanced

Younger investors who invested in balanced funds after understanding their risks and with a long-term horizon should continue to their SIPs in them

Balanced funds emerged as the favourite investment category of investors in 2017 (See table: AUM rose sharply...). Not just younger people entering into equity markets for the first time, even seasoned investors who wanted a fund that would handle the asset allocation for them, have bet on these funds. Even many elderly investors were mis-sold these funds last year with the promise of regular dividend income. All these investors need to prepare for more turbulent times in this category in 2018.

Balanced funds are also known as equity-oriented hybrid funds. They invest more than 65 per cent of their