Not just mutual funds, even insurance companies offer dynamic asset allocation funds or Balanced Advantage funds (BAF). These schemes aim to deliver consistent returns across market cycles, with lower volatility than pure equity funds. Here are 5 such top BAF ULIP funds
The main rationale behind the scheme is that different asset classes tend to perform differently depending on economic cycles, global scenarios, and geo-political events.
Dynamic asset allocation and aggressive hybrid funds invest across equity and debt. But one maintains a steady equity allocation usually while the other swings wildly.
Mutual fund products can help you to accumulate money to pay for long term goals. You can be a regular saver in these to ensure that you remain on track to your goals.