Don’t be afraid of market volatility any more
In a game of Kabaddi, when a raider enters the opposing team’s arena, he/she is unsure how they will tackle him/her. He/she devises a strategy to either attack by moving forward or defend himself/herself by moving backward, depending on the way the opposing team reacts. Using this strategy in a disciplined way, a good raider scores points and wins the game for his/her team.
Similarly, Balanced Advantage Funds, like a good raider, devise a strategy to attack and generate returns when markets are moving up; and defend by limiting downside when markets are moving down. Using this strategy in a disciplined way, they aim to win over market volatility in the long run.
Balanced Advantage Funds (BAFs)
They are process-driven funds that shift between equity and debt, depending on market conditions and aim to provide equity like returns, but with lower uncertainty.
How do they help you?
- Take away the need to time the markets
- Automatically change equity allocation to adapt with changing market conditions
- Aim to grow your money in bull markets and protect it during bear markets
- Help overcome emotional bias while dealing with equity markets and their uncertainty
If these are your problems and expectations, BAFs are for you
You’re a beginner and not sure about when to invest in equities
You expect equity like returns in the long run, but with lower uncertainty
You want to remain at an advantage, irrespective of rising or falling equity markets
You don’t want to get emotionally drained due to market volatility