How Balanced Price Range Allow You To Trip High Market Valuations

As debt-oriented balanced funds are treated as non-equity instruments, their tax treatment is similar to pure debt funds.
Thus, their short term capital gains are added to your income and taxed according to your tax bracket while their long term capital gains, i.e.
Comparison of annual returns and standard deviation of large cap and equity-oriented balanced fundsMutual funds category Annualised Returns Standard deviation 1-year 3-years 5 years Large cap funds 20% 11% 15% 13.67 Equity-oriented balanced funds 17% 14% 16% 10.04(Manish Kothari is the Head of Mutual Funds, Paisabazaar.com)
This is when equity-oriented balanced funds have a standard deviation, a measure of volatility, of 10.04 while large cap funds have a much higher standard deviation of 13.67.
gains booked within 1 year, of equity-oriented balanced funds are taxed at 15% while their long term capital gains are tax-exempt.

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