How does a balanced Advantage fund work? (2023)

How does balanced advantage fund works?

How do balanced advantage funds work? Balanced advantage fund is a hybrid fund, which changes its asset allocation i.e. equity and fixed income allocations, dynamically according to market conditions. Balanced advantage funds usually reduce equity and increase fixed income allocations when equity valuations are high.

(Video) "How does a Balanced Advantage Fund work"
(MoneyMonk Financial)
Is Balanced Advantage fund good investment?

Benefits Of Balanced Advantage Funds

In addition, these funds can significantly cut or raise their allocation to debt and equity depending on the market conditions. Hence, these funds can give a better inflation-adjusted long-term return, more than a typical debt or balanced fund.

(Video) Balanced Advantage Fund | How it works
(Deepak R Khemani)
How safe is balanced advantage fund?

Lower returns than Equity-oriented funds: While balanced advantage funds might be a safer way to participate in the stock market, the safety comes at a cost. Most balanced funds underperform equity mutual funds, especially during bull markets, because a portion of their investment is still dedicated to debt funds.

(Video) HDFC Balanced Advantage Fund vs ICICI Pru Balanced Advantage Fund | Mutual Fund Monday | Gaurav Jain
(Yadnya Investment Academy)
How do I choose a balanced advantage fund?

Before investing in a Balanced Advantage fund, assess your risk profile, investment objective and investment horizon to select a suitable scheme in the category. Then analyse the fund's consistency in performance across various market periods (bull and bear market phases) compared to the benchmark and category peers.

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(B Wealthy)
What is the average return on balanced advantage fund?

The balanced advantage fund or dynamic asset allocation category has offered an average return of 3.52% in 2022.

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(Ungal Investment Coach)
What are the disadvantages of balance fund?

Disadvantages of investing in balanced funds

A sizeable portion of a balanced fund is invested in bonds. As such, they are unlikely to outperform a pure equities fund over a long investment horizon (e.g. 20 or 25 years). If you're looking for a more active product, then balanced funds are not for you.

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(freefincal - Prudent DIY Investing)
Can balanced Advantage funds give negative returns?

Are Balanced Advantage Funds replacement for debt? As these funds invest in equities, they are not a replacement for debt in your portfolio. While they fall less when markets correct, they can give negative returns.

(Video) Watch this short video to know how Balanced Advantage Funds work
(NJ Wealth)
Who should invest in BAF?

Mohanty asserts, “BAFs can be useful for conservative investors who wish to step up the risk ladder. The growth assets will prop up portfolio return, without taking undue risk.” At the same time, investors with a high equity exposure may invest in BAFs to reduce the portfolio volatility.

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(Gurleen Kaur Tikku)
Are balanced funds good for 2022?

These funds can keep you on track in a topsy-turvy 2022.

Older investors on the verge of retirement may opt for a more balanced approach. Often, this consists of a healthy weighting toward lower-risk bonds and cash.

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(ET Money)
Which is the best balanced advantage fund for monthly dividend?

  • BOI AXA Mid and Small Cap Equity and Debt Fund.
  • ICICI Prudential Multi-Asset Fund.
  • HDFC Balanced Advantage Fund.
  • UTI Hybrid Equity Fund.
  • Sundaram Equity Hybrid Fund.
  • Kotak Equity Hybrid Fund.
6 days ago

(Video) Balanced Advantage Fund. Explained by: Pankaj Mathpal
(Pankaj Mathpal)

Which is better FD or Balanced Advantage fund?

As compared to an FD, balanced funds may deliver higher returns over a medium-term investment horizon of say five years. Additionally, you would get the benefit of indexation on long-term capital gains on the debt components.

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(Mutual Funds at Groww)
Are balanced funds good for retirees?

In retirement a balanced fund allows you to take systematic withdrawals while maintaining an appropriate asset allocation easily. This approach may work well for those who have one account to draw from, such as $100,000 in an IRA where they want to take out $400 a month.

How does a balanced Advantage fund work? (2023)
How many balanced funds should I have?

The consensus is that a well-balanced portfolio with approximately 20 to 30 stocks diversifies away the maximum amount of unsystematic risk.

What is difference between balance fund and balance Advantage fund?

Balanced funds are taxed like debt funds as their equity allocation even at a maximum of 60% lies below 65% that qualify for equity-oriented funds and get the tax treatment alike. On the other hand, balanced advantage funds are taxed like equity or debt depending on the asset allocation at the time of redemption.

What are the returns of balanced fund?

Mutual fund5 Yr. Returns3 Yr. Returns
Edelweiss Balanced Advantage Fund - Direct Plan - Growth11.72%15.32%
Mirae Asset Hybrid - Equity Fund - Direct Plan - Growth12.39%14.3%
SBI Equity Hybrid Fund - Direct Plan - Growth12.41%14.2%
UTI MUTUAL FUND - Direct Plan - Growth9.32%13.98%
6 more rows

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