Why the sudden rush for Balanced Advantage Funds?
Aug 27, 05:08

While many equity funds saw inconsistent inflows over the past six months, balanced advantage funds (BAFs) registered a steady rise in net inflows, AMFI data shows. BAFs are equity-oriented auto asset allocation funds rebalancing their portfolio among equity, debt and arbitrage opportunities based on the market conditions. Most of the funds cut net-equity allocation and increase arbitrage holding when equity markets rally and vice versa. It is currently suitable because equity markets have hit all-time highs. Instead of investors having to do this manually in other schemes, BAFs do it automatically. This will cushion the market correction while also keeping a part of their investments in equity.

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