In addition to what I have said, also consider the reason/goal for putting money in UITFs/mutual funds.
Stocks/Equity Funds: This kind of fund is mainly for capital appreciation and is ideal for those who have high risk tolerance. The stock market is very volatile (on a short term outlook). In order to mitigate such risk, you must have an investment time frame of at least 5 years. Basically, in equity funds, the longer the time horizon, the better the potential gains would be. Average rate of return is 10% to 15% per year.
Fixed Income Funds: This kind of fund is mainly for capital preservation and conservative growth. It's far less volatile than equity funds but its potential returns is lesser (risk is lesser as well). Time frame for fixed income funds is normally 2 years to 5 years or even more. Average rate of return is around 4% to 8% per year.
Balanced Funds: Ideally, it is a 50-50 split (50% stocks and 50% fixed income) but in reality, it normally mimics the better performing fund. At a first glance it might look as the best option since it has an exposure in both but by looking at their prospectus, balanced funds has limited investments in the stock market compared to equity funds which, if the market is doing quite well, hinders it from growing to its full potential. Balanced funds are good for people who are less risk tolerant but at the same time is looking for a decent rate of return. Average rate of return is around 8% to 12% per year.
**Average rate of return is not guaranteed and is based on previous/historic data.