Explained: Fundamentals of Balanced Advantage Fund

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Today, if someone is investing in equity, volatility is one word that keeps plaguing with the mind of the investor. In such asset classes, Balanced Advantage Fund (BAF) will provide investors a smooth journey. While hybrid funds consists of equal investments in both equity and debt, BAF is a category under hybrid funds which provides a balance between equity and debt based on market environment.

So, when the markets are bad, equities don’t get exposed much. However, the investor will get lower returns. On the other hand, when the market is skyrocketing the equity exposure in these funds tend to go up and also there would be better participation.

To know more about, watch this video as Niranjan Avasthi, Product and Marketing Head, Edelweiss Mutual Fund, explains the basic principles of Balanced Advantage Fund (BAF) in an interaction with Priyanka Sambhav.