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BALANCE BOND

BALANCE BOND. BY: Scott Whittenberg , Reece Jones, Jared Newby. What is a Balance Bond?. A mutual fund that buys a combination of common stock, preferred stock, bonds, and short term bonds, to provide both income and capital appreciation while avoiding excessive risk.

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BALANCE BOND

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  1. BALANCE BOND BY: Scott Whittenberg, Reece Jones, Jared Newby

  2. What is a Balance Bond? • A mutual fund that buys a combination of common stock, preferred stock, bonds, and short term bonds, to provide both income and capital appreciation while avoiding excessive risk. • The purpose of balanced funds is to provide investors with a single mutual fund that combines both growth and income objectives, by investing in both stocks (for growth) and bonds (for income).

  3. Example of a Balance Bond • HDFC Prudence Fund • NAV=173.67 • Initial Price =10 • Launch Date February 1, 1994 • Scheme Type – Open Ended • NAV Returns 1 Year =100.53%

  4. Investment Policy • The investment objective of HDFC Prudence is to provide periodic returns and capital appreciation over a long period of time, from a well advised mix of equity and debt investments, with the aim to minimize any capital erosion. • Under normal circumstances, it is a vision that the debt : equity mix would vary between 60:40 and 40:60 respectively. This mix is geared to achieve the investment objective and is expected to result in regular income, capital appreciation and also prevent capital erosion

  5. RISK • HDFC Prudence reduce risk because they always investment in AA or AAA rated instruments which are considered safe.

  6. HELLLLLLLLOOOO DO YOU HEAR ME!!!

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