As stock prices shore-up, even balanced funds are seeing some growth.

Just last fortnight, balanced funds were in the doldrums with both the equity and fixed income portions seeing some erosion in value. However as equity markets look up, that trend has been reversed for the time being.

Open-ended, Balanced Funds	NAV (Rs)	Last week	Last month	Last year	Since inception
BSE- 30	-	-1.4%	2.8%	-11.4%	-
S&P CNX Nifty	-	-1.0%	2.5%	-4.0%	-
CRISIL - 500	-	1.0%	4.4%	-0.2%	-
Dhanasahayog B (Div.Reinvest)	8.2	2.4%	2.9%	-24.5%	-4.5%
Magnum Balanced Fund	15.5	2.3%	4.6%	43.0%	24.2%
Sundaram Balanced	10.0	1.9%	1.6%	0.0%	-1.7%
Sundaram Balanced Fund (Gr)	10.0	1.9%	1.6%	0.0%	-1.7%
Zurich(I) Prudence (Gr)	20.0	1.9%	6.2%	11.0%	17.2%
PNB Balanced Growth	13.7	1.7%	1.3%	17.5%	26.4%
Dhanavidya	12.1	1.4%	4.5%	-27.4%	2.4%
Sun F&C Balanced (Gr)	8.6	1.2%	3.7%	0.0%	-19.1%
Canganga	10.4	1.2%	-3.6%	-8.9%	2.1%

(The above table only shows balanced funds with over 1.0% growth over the last week)

All the balanced funds in our sample have outperformed the benchmark indices over the last week. However the story is a little different over the month and the year. All funds (save Canganga) gave positive returns over the month, more or less in line with the benchmark indices. However, only 3 funds posted growth over the year, with 3 funds showing negative growth and underperforming the benchmark indices.

Given the fact that we are currently witnessing range-bound trading in equity markets, there is no saying how long this growth can hold up. The outlook in fixed income instruments will depend on the scenario in forex markets, which incidentally have cooled down. If the forex markets heat up and the rupee starts showing signs of weakening, the RBI could try to support the rupee, thereby affecting bond yields.

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