Balanced funds or Equity oriented Hybrid funds are those funds which typically maintain a 65:35 or 70:30 split between Equity and Debt. By virtue of the same, they get classified as Equity mutual funds as far as tax treatment is concerned.

Although not explicitly mentioned anywhere, the Debt allocation is generally managed quite passively as against an income fund wherein the fund managers tend to manage the debt portfolios quite actively. Hence these tend to behave more like accrual strategies.

When it comes to the equity allocation, there are certain fund managers who maintain a strong large cap portfolio while there are others who tend to go heavy on mid cap stocks.

So ideally before investing into a balanced fund, one should seek expert advice concerning the risk quotient and the management style of the particular fund one is thinking of investing into.

Source: http://www.karvywealth.com/services.aspx

As the name indicates, balanced fund investment main motive is to get both growth and income. In this type of fund, the fund is usually made in equity and debt securities. It helps an investor a long term growth through its equity components along with income procured through the investment portfolio debt securities. Its a good option for you, if you are looking for long term growth. You can check out with the financial houses such as reliance mutual fund, HDFC mutual fund, DSP black rock and others and pick some investment plan for you