Personal Finance Which is the better option? Balanced funds or focused allocation Updated : August 31, 2018 02:15 PM IST The fund norms by the Securities and Exchange Board of India state that in aggressive hybrid funds 65 percent to 80 percent allocation should be in equities. If you are doing a focused allocation as per your desired ratio, you have to maintain discipline and do periodic portfolio rebalancing to avoid a skew in allocation. If you do a focused allocation of say 75 percent to equity funds and 25 percent to debt funds, the debt component will be subjected to this relatively higher tax rate. Subscribe to Moneycontrol PRO at just Rs.33/- per month for the first year. Use code SUPERPRO. Limited period offer. Available on Web and Android.