Balanced advantage funds invest almost equal proportions in both equity and debt instruments. These funds generally do not have a minimum and maximum limit for their investments in equity and debt instruments.
The objective of the balanced advantage funds is to generate maximum returns by mixing equity and debt instruments depending on the market conditions.
Balanced advantage funds are suitable for investors with moderate risk appetites. These funds can be a suitable option for long-term investors aiming to build wealth using a diversified portfolio. These funds do not have fixed allocation limits in equity and debt. The manager can change the allocation as per the market outlook. This makes them suitable for conservative equity investors and first-time equity investors as these funds have lower volatility compared to pure equity funds and higher returns compared to pure debt funds. We believe that conservative equity investors can consider this category with an ideal time horizon of 5 to 7 years.