A balanced fund combines a stock component, a bond component and sometimes a money market component in a single portfolio. Generally, these hybrid funds\A0stick to a relatively fixed mix of stocks and bonds that reflects either a moderate, or higher equity, component, or conservative, or higher fixed-income, component orientation.

It can be a mix of equity, debt and arbitrage depending on what expertise fund managers have and how willingly it would take risk. So different schemes are merged in one.