Investment has become more tactical than strategic as one has to choose the option of Investment based on the market situation. The volatile markets and an indication from the movement of the markets in the first month of 2022 explicitly show a roller coaster ride way forward. Many fear that it won't be as smooth a ride as we all witnessed after the eruption of the pandemic. Thus, a worry to derive returns from volatile stock markets and, on top of it, rising yields have made debt markets also volatile. Thanks to the Bull Run in equity markets which has given everyone decent returns in their portfolio, it is undoubtedly making them anxious to book profits. Keeping in mind this kind of uncertainty, we are bringing a world of Hybrid Funds, which has a combination of Equity and Debt in one Scheme. These funds if managed actively can generate extra return than any possible safe product could give, in the medium to short term.

Balance Advantage Funds

Balance Advantage Funds invest in a mix of stocks and Debt Funds. However, they keep changing this allocation based on the market conditions to provide optimal returns with minimal risk. The Scheme uses an in-house valuation model to limit the downside risk during a falling market and to capture growth opportunities in a rising market. In terms of risk profiling, the Scheme is suitable for investors with a moderately high-risk appetite and Investors who wish to participate in equity markets with a relatively conservative approach can invest in this Scheme. The Scheme attracts taxation of Equity, i.e. long, term capital gain of 10% after one year. That has made the Scheme popular, especially in the volatile market, as the product can beat returns of any active equity fund in some situations.

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