In the complex world of mutual funds, where every decision holds potential financial implications, finding the right investment avenue can be challenging. Balanced advantage funds (BAFs) emerge as a relatively stable option, offering investors a balanced mix of equity and fixed income exposure that adapts to market dynamics. Today, we'll delve into BAFs through the lens of two big players-HDFC Balanced Advantage Fund (HDFC BAF) and ICICI Prudential Balanced Advantage Fund (ICICI PRU BAF).
What is a BAF?
A BAF, or a dynamic asset allocation fund, invests in both equity and debt, and rebalances between them periodically. The idea is to give you a less volatile experience than a pure equity fund. BAFs are generally taxed as equity (10% long-term capital gains, or LTCG, after 1 year) since they generally take a 65% equity exposure at the gross level. However, they typically use derivatives to hedge part of this exposure when the markets rise. "The dynamic asset allocation category is expected to be a go-to fund, an allweather fund for all kinds or investors," says Nirav Karkera, head of research at Fisdom, a wealth-tech platform.
この記事は Mint Mumbai の February 08, 2024 版に掲載されています。
7 日間の Magzter GOLD 無料トライアルを開始して、何千もの厳選されたプレミアム ストーリー、9,000 以上の雑誌や新聞にアクセスしてください。
すでに購読者です ? サインイン
この記事は Mint Mumbai の February 08, 2024 版に掲載されています。
7 日間の Magzter GOLD 無料トライアルを開始して、何千もの厳選されたプレミアム ストーリー、9,000 以上の雑誌や新聞にアクセスしてください。
すでに購読者です? サインイン
GDP growth falters in Q2, hopes pinned on 2nd half
GDP growth of 5.4% was the lowest in nearly two years, lower than estimates
Aster DM merges with Quality Care in $5-billion deal
Bengaluru-based Aster DM Healthcare on Friday announced a merger with Blackstone-backed Quality Care India Ltd (QCIL) in a deal that will value the combined entity at $5.08 billion (₹43,000 crore).
AIFs, equities pip realty in family office funding
What's Ahead for Family Offices?
Defence contracts emerge as key biz for telecom infra makers
India's push for local manufacturing has prised open a new business frontier for domestic telecom equipment manufacturers.
HUL turns to high-growth segments to lift demand
Premium is the watchword for packaged consumer goods major Hindustan Unilever Ltd (HUL), as it unveiled a new strategy on Friday to ride on an expected rise in household income and increasing consumer preference for more expensive brands and products.
Russia's war economy shows new cracks after ruble plunges
The Russian economy, surprisingly resilient through two-plus years of war and sanctions, has suddenly begun to show serious strains.
Colgate making right moves, but valuation a concern
Colgate Palmolive (India) Ltd has had a good run in recent quarters and continues to make efforts to boost growth.
Kalyani family's wealth war takes a fresh turn
Gaurishankar Kalyani has filed papers to back his claim that HUF exists
Zomato raises ₹8,500 crore via QIP
A big part of the proceeds is to be used to expand Zomato's quick commerce arm Blinkit
Fintech startup Klub halves workforce
Bengaluru-based financing startup Klub laid off about 60-70 employees in September and paused its commerce operations, according to multiple people aware of the developments.