Balanced Advantage Funds, also known as Dynamic Asset Allocation Funds, belong to the category of Hybrid Mutual Funds. These funds invest in both equity and debt without being constrained by a fixed allocation. Fund managers have the flexibility to adjust the allocation between equity and debt based on prevailing market conditions.
Unlike other hybrid mutual funds, Balanced Advantage Funds can dynamically change their mix of equity and debt in response to market fluctuations, subject to scheme offer documents and SEBI (Mutual Funds) Regulations 1996.
The key features of Balanced Advantage Funds are
> Flexible Asset Allocation Funds: These funds actively change their stock-to-bond ratio in view of market conditions and are aggressively managed.
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