Hold on to your balanced advantage funds

RECENT MARKET CORRECTIONS HAVE MADE VALUATIONS MORE ATTRACTIVE

- SAIKAT NEOGI

AS THE MARKETS turn volatile, investors should consider balanced advantage funds (BAFs) for better risk-adjusted returns. These are ideal as a core stabiliser in a portfolio for risk-averse investors or those seeking smoother returns without timing the market.

These funds dynamically manage allocation between equity and debt — cutting equity exposure when valuations are stretched and raising it when markets turn attractive.This helps in cushioning the downside during corrections while still participating in upturns.