Think equities are overvalued? Consider investing in a balanced advantage fund
Investors India|August 2024
The equity market has been experiencing a strong rally, leading many investors to believe it has become overvalued and that a correction is imminent.
Sudipta Mitu
Think equities are overvalued? Consider investing in a balanced advantage fund

For such investors, balanced advantage funds (BAFs) are a suitable investment option.

How Do BAFs Work?

Fund managers of BAFs typically employ a counter-cyclical strategy. They use valuation metrics such as price-to-earnings, priceto-book value, dividend yield, etc. to decide equity allocation. As the market becomes more expensive, they reduce equity exposure, and as it becomes cheaper, they increase it. This buy-low, sell-high approach allows BAFs to deliver decent risk-adjusted returns over the long term.

All-weather funds

This story is from the August 2024 edition of Investors India.

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This story is from the August 2024 edition of Investors India.

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