What are Balanced Advantage Fund?

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BALANCED ADVANTAGE FUND
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What are Balanced Advantage Fund?

• It is a re-categorization of Hybrid Funds done by
  SEBI and it differs from Balanced Funds. Balanced
  Funds have a fixed ratio for investment in equity
  and debt with a narrow band for flexibility,
  about 40-60 equity allocation, whereas Balanced
  Advantage Fund invests 33 in pure equity and 33
  in arbitrage to keep gross equity investments
  around 65 and invest the rest in debt.
• It has the flexibility for dynamically shifting
  the corpus to and from equity/debt.It aims for
  capital appreciation but also seeks to guard
  against volatility. They are taxed under Equity
  Funds (10) and not Debt Funds (20 with
  indexation).

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Benefits of Balanced Advantage Funds

• Most of the balanced advantage funds seek high
  returns from equity investments.
• The dynamic allocation provides flexibility to
  the managers and portfolio diversity to the
  investors as there is continuous shifting in
  assets as per prevailing market conditions.
• Balanced Advantage Funds are relatively less
  volatile and safer than other equity funds as
  when markets are expensive, fund allocation to
  debt is increased which acts as a security.
• Start your investments by investing in Balanced
  Advantage Fund today!

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