To avoid confusion, don’t equate a BAF with the earlier balanced funds. One should get into dynamic asset allocation funds or BAFs to go with the fund manager’s calls on the net equity exposure as per his reading of market valuations. It may be noted that erstwhile balanced funds are now aggressive hybrid funds, and that balanced advantage funds belong to a different sub category under hybird. The cause of confusion is that since funds in this category are termed “balanced advantage”, investors who are not so savvy equate these with balanced funds of earlier days. Since this is “dynamic”, by definition AMCs have flexibility in managing these funds. The norm says that funds in this category should have “investment in equity/debt that is managed dynamically”. Recent SEBI norms dated April 2018 created new categories one of them is called dynamic Asset Allocation or balanced advantage fund (BAF). What is Balanced Advantage Mutual Funds ? We have listed top balanced mutual funds below. The investors are advised to look for top Balanced Fund before investing in Balanced Mutual Funds. Being a combination of both Equity and Debt, investors should be very careful when Investing in these funds. The assets invested in equities and stocks offer market-linked returns while the assets invested in debt instruments offer fixed returns. Balanced Mutual Funds are beneficial for investors who are willing to take a market risk while looking for some fixed returns as well. Top balanced advantage funds are Mutual Funds that invest more than 65% of their assets in equities and the remaining assets in debt instruments to yield good overall returns. Thus, if the market’s price-to-book value ratio is low (based on historical values), the fund raises its direct stock exposure and relies less on arbitrage and vice versa. Aditya Birla Sun Life Balanced Advantage FundĨ Best Balanced Advantage Mutual Funds 2022 Updated on Janu, 107387 viewsīalanced Advantage Funds adjusts its direct equity exposure based on whether overall Market valuations are expensive or cheap (on the Basis of price-to- Book Value).ICICI Prudential Balanced Advantage Fund.8 Best Balanced Advantage Mutual Funds for Investments in India 2022 - 2023.What is Balanced Advantage Mutual Funds ?.
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