Skip to main content

Get a step closer to your financial goals with balanced advantage funds

balanced advantage fund
Share :

Balanced advantage funds have emerged as a strategic investment option for individuals looking to achieve their financial goals. These funds offer a unique blend of equity and debt investments, providing a dynamic approach to potentially capitalising on market opportunities. In this article, we will explore how balanced advantage funds work, the advantages they offer, factors to consider before investing, and why is financial planning with balanced advantage fund invaluable for all investors.

  • Table of contents
  1. How do balanced advantage funds work?
  2. Bajaj Finserv Balanced Advantage Fund
  3. FAQ

How do balanced advantage funds work?

Balanced advantage funds have two dynamic components – equity and debt. While the equity allocation enables the fund to make the most of growth opportunities, the debt allocation acts as a potential cushion in volatile markets. Thus, balanced advantage fund managers have the liberty to change the equity-debt allocation depending on the prevailing economic conditions. This unique approach ensures that the fund always maintains a ‘balanced’ approach to risk and reward. Hence, these funds are also known as Dynamic Asset Allocation Funds.

For example, when the equity markets are bullish, the fund manager may increase exposure to equities to capture potential gains. Conversely, during bearish phases, the allocation towards debt is increased to mitigate downside risks. This adaptive approach helps investors work around market volatility, effectively.

Advantages of Investing in balanced advantage funds:

Volatility mitigation: With both equities and fixed income in the mix, these funds offer a relatively smoother ride compared to pure equity funds, helping you weather market downturns.

Potential for higher returns: While offering relative stability, balanced advantage funds also allow exposure to the growth potential of equities, potentially outperforming pure fixed income investments in the long run.

Professional management: Experienced fund managers constantly monitor and adjust the asset allocation, ensuring the fund remains balanced and adapts to changing market dynamics.

Financial planning: Balanced advantage funds play a crucial role in financial planning by offering a well-balanced mix of asset classes. This diversification can help investors to potentially achieve long-term financial goals while mitigating risks.

One-stop solution: A single fund simplifies your portfolio, eliminating the need to manage multiple investments yourself.

Factors to consider before investing in balanced advantage funds:

Risk tolerance: These funds still carry some inherent risk due to the equity component. Assess your comfort level with potential fluctuations before choosing a balanced advantage fund

Investment horizon:These funds are better suited for long-term investments (ideally 5 years or more) to take advantage of their risk-adjusted returns.

Fund management: Research the fund manager's track record and investment philosophy to ensure it aligns with your own.

Expense ratios: Consider the expense ratios associated with the fund, as lower expenses can enhance your overall returns.

Performance history: Review the historical performance of the fund to gauge its consistency in delivering returns.

Bajaj Finserv Balanced Advantage Fund

The Bajaj Finserv Balanced Advantage Fund is an open-ended Dynamic Asset Allocation Fund. Its investment approach is to use equity's potential upside while managing downside risks through a dynamic debt allocation. Thus, the fund invests in equity and equity-related instruments, while also utilising debt, money market instruments, and equity derivatives. Its benchmark is the NIFTY 50 Hybrid Composite debt 50:50 Index. As an open-ended equity scheme, it offers investors a dynamic approach to capitalise on market opportunities while actively managing risks. However, there is no guarantee of returns. For a detailed scheme information, click here.


Balanced advantage funds are not a shortcut to riches, but they offer a relatively less risky and potentially more rewarding path to your financial goals over the long term. By combining relative stability and growth potential, they help you counter the twists and turns of the market with confidence, taking you a step closer to achieving your financial dreams. The dynamic nature of these funds, coupled with their ability to adapt to market conditions, makes them an invaluable option for investors seeking a balanced and strategic approach to wealth creation.


How to achieve financial goals with balanced advantage fund?
Balanced advantage funds offer a dynamic asset allocation strategy, optimising the return potential while managing risk. Thus, financial planning with balanced advantage fund to achieve financial goals is a suitable option.

What is the difference between balanced advantage fund and dynamic asset allocation fund?
Both are different names for the same type of fund and follow the same investment strategy.

What is the ideal investment horizon for balanced advantage funds?
Balanced advantage funds are better suited for medium to long-term investments. Investors with a horizon of 5 years or more can potentially benefit from the fund's dynamic asset allocation strategy.

Mutual Fund investments are subject to market risks, read all scheme related documents carefully.
This document should not be treated as endorsement of the views/opinions or as investment advice. This document should not be construed as a research report or a recommendation to buy or sell any security. This document is for information purpose only and should not be construed as a promise on minimum returns or safeguard of capital. This document alone is not sufficient and should not be used for the development or implementation of an investment strategy. The recipient should note and understand that the information provided above may not contain all the material aspects relevant for making an investment decision. Investors are advised to consult their own investment advisor before making any investment decision in light of their risk appetite, investment goals and horizon. This information is subject to change without any prior notice.