Balanced advantage funds, which dynamically shift between debt and equity based on market conditions, are cautious in the short term due to high valuations and have hedged positions.
"Because every individual has a unique appetite, whether its for risk, time horizon, demographics, return profile, and more. Providing a standard asset allocation strategy for everyone isnt straightforward. Therefore, some thumb rules, like “100 - age = Equity allocation” can serve as guidelines. Hence, the asset allocation strategy should be closely aligned with your future investment plans. "
The scheme will allocate 0-100% in equity and equity related instruments including derivatives, 0-100% in debt and money market instruments, including units of debt oriented mutual fund schemes, 0-35% in foreign securities including ADRs / GDRs / foreign equity and debt securities, and 0-10% in units issued by REITs & InvITs.
Portfolio rebalancing is important, to protect the corpus that has been meticulously built over the years. However, the method followed for this may differ.
From relying just on the Nifty 50’s PE ratio, the fund will now look at multiple factors. The last date for investors to exit if they do not approve of this change, is August 11.
Yes, I think first on the earning itself the report, the quality of the earnings till date, whatever is reported when we look at this earning profile, obviously the top line is slightly weaker.
Why Tata Balanced Advantage Fund is For The New and Moderate-risk Investor thehindubusinessline.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from thehindubusinessline.com Daily Mail and Mail on Sunday newspapers.
Balanced Advantage Funds invest in a mix of equity and debt depending on the relative attractiveness of the asset classes. These schemes aim to offer equity exposure with reduced volatility. Should you invest? A Moneycontrol review.
Though the Nifty50 index is at an all-time high, investors need to stick to their asset allocation and invest in multi-cap and flexicap funds through SIP and STP, advise experts. But if you need money in the next 2-3 years, take some money off the table.