“Vipin, I am planning to start investing in mutual funds. However, I do not want to go headlong into equity so will start with a balanced fund.”
OK. That sounds good. Balanced funds bring the best of both the worlds to you.
“Now, I was told about one of the most reputed funds – HDFC Prudence. But then I realise that HDFC has another fund – HDFC Balanced. I am confused.”
Why are you confused Vinay?
“Arre bhai! Which one should I invest in? And why are there 2 balanced funds in the same fund house?”
OK, lets begin from the start. What were you told about HDFC Prudence Fund?
“That it has a good track record. Also, that is managed by one Mr. Prashant Jain, who is supposedly one of the best fund managers.”
Hm, anything else?
“I also looked up the site which gives star ratings. It has got 4 stars.”
We both smiled.
“I know it doesn’t matter. OK, now you need to help me decide. Which one?”
Sure Vinay. Let’s get a better understanding of each of the funds. That would automatically bring out the difference between the two.
Hopefully, you will get to decide the right one for yourself.