Talking about the portfolio of Balance Advantage Fund, they mainly invest in equities. These derivatives reduce portfolio downstream risk by using derivatives. The allocation of such funds is 87.6% in the lodge cap.
The balance advantage scheme of mutual funds balances investment in debt and equity. These funds also give better returns in 5 and 7 years. Returns more than 10% in ten years
If you want your investment to be less risky and have measurable returns, then you can choose the path of Balanced Advantage Fund (Baf) of mutual funds. As the name itself suggests, this category of mutual funds keeps your investment balance. That is, it invests your money in equity and debt.
Balance Advantage Fund is essential in the portfolio
Analysts recommend that if you are an investor of a mutual fund, then there must be a balance advantage fund in your portfolio. Such funds are an open-ended fund that invests 30 to 80% in equities. It depends on the market valuation. The Nifty-50 TRI of this benchmark has given a return of 7.7% in the last 10 years (15 October 2020). However, there are some funds in this category that have given higher returns than this.
AUM of 26,174 crores
Statistics show that ICICI Prudential Balance Advantage Fund, a large fund with an asset under management of Rs 26,174 crore in this fund, has given a return of 10.5% compounded annual growth rate (CAGR) over ten years. Launched in 2006, this fund is a large fund house in this category which has seen the performance of all the bicycles in the market. The scheme of this fund is managed by S Naren, Rajat Chandak, Ihab Dalwai and Manish Banthia.
Large cap invests more
It is a diversified portfolio consisting of large bluechip companies and debt securities with AAA ratings. This means that your investment is happening in completely safe and sound companies. Actually these types of funds follow the in house price to book model. Such funds dynamically manage investments between equity and debt.
This means that when the market valuation is high, your investment will go into debt. When the market valuation is low, your investment will go into equity.
These funds mainly invest in equities.
Talking about the portfolio of such funds, they mainly invest in equities. These derivatives reduce portfolio downstream risk by using derivatives. The allocation of such funds is 87.6% in the large cap, 10.9% in the midcap and 1.5% in the small-cap. Its net exposure to equity as of 30 September has been 62%. The scheme is overweight in Pharma, Power, Telecom and Consumer durables. Because they are all at very attractive valuations.
You should invest for at least 5 years
Analysts say that at least 5 years should be invested in such a fund. Balance Advantage funds invest in debt processing in fixed income, government securities, government companies and private companies. This potentially leads to capital gains. These funds also give better returns in 5 and 7 years. The fund has given returns of 7.7 in five years and 11.3% in seven years.