An investigation was conducted of balanced heterodyne detection in applications where laser intensity fluctuations are the dominant noise source, as, for example, in laser Doppler velocimetry with a He-Ne laser. The suppression of excess noise in comparison with a single receiver detection system is analysed theoretically. In the authors heterodyne experiment they compared two different fibre-optic Mach-Zehnder interferometers, both with single-mode polarization-preserving fibres, one in integrated form using a directional coupler, the other one with a dielectric beam-splitter as the optical mixing element. With the former the authors verified the theoretical results; with the latter they have demonstrated that with a good balance the fundamental shot noise detection limit can be reached.