Bandhan Balanced Advantage Fund -Direct Plan
An open ended dynamic asset allocation fund
What is a Balanced Advantage Fund?
Picture an investment that adjusts itself as smoothly as a seasoned driver navigating through traffic. Balanced Advantage Funds (BAF funds) shift between equities and debt based on market conditions, offering you a smooth ride through the ups and downs. This adaptability helps balance risk and return, making it easier for you to stay on course toward your financial goals.
Balanced Advantage Funds (BAF), also known as dynamic asset allocation funds, are a type of hybrid fund. They adjust asset allocation based on market conditions, typically investing across equities, derivatives, debt, and money market instruments. They invest in both large-cap and mid-cap companies, benefiting from the stability of large caps and the growth potential of mid caps.
With dynamic asset allocation across equity and debt, Balanced Advantage Funds are categorized as moderate to high-risk. However, their flexible strategy allows for the potential of higher returns.
A key benefit of Balanced Advantage Funds is their ability to significantly adjust asset allocation based on current market conditions. In volatile markets, for example, the fund may shift toward fixed-income instruments and other safer avenues.
- Min Investment 1,000
- Min SIP Amount 100
- Exit Load
In respect of each purchase of Units:
- For 10% of investment: Nil
- For remaining investment: 1% if redeemed/ switched
out within 1 year from the date of allotment (w.e.f. July 5, 2017)
Scheme is suitable for a minimum investment horizon of more than 3 years
Tier 1 Benchmark : NIFTY 50 Hybrid Composite debt 50:50 IndexAlternate Benchmark : Nifty 50 TRI
- Performance
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Performance as on 31st October 2024
| Scheme Names | CAGR Returns (%) | Current value of Investment of 10,000 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| 1 year | 3 year | 5 year | 10 year | 10/10/2014 Since inception | 1 year | 3 year | 5 year | 10 year | 10/10/2014 Since inception | |
| Bandhan Balanced Advantage Fund - Regular Plan - Growth | 20.21 | 8.79 | 11.01 | 8.47 | 8.82 | 12,027 | 12,886 | 16,865 | 22,555 | 23,426 |
| 18.75 | 9.42 | 12.31 | 10.60 | 10.95 | 11,881 | 13,103 | 17,876 | 27,418 | 28,453 | |
| 28.30 | 12.35 | 16.61 | 12.62 | 13.19 | 12,839 | 14,195 | 21,582 | 32,844 | 34,798 | |
| ^ Tier 1 Benchmark | ^^ Alternate Benchmark | ^^^ Tier 2 Benchmark | ||||||||||
This fund is managed by Mr. Manish Gunwani (w.e.f 24/01/2024), Mr. Prateek Poddar (w.e.f 07/06/2024), Mr. Brijesh Shah (w.e.f 16/07/2022)
View fund performance of other funds managed by Mr. Manish Gunwani, Mr. Prateek Poddar, Mr. Brijesh Shah
Past performance may or may not be sustained in future.
Regular and Direct Plans have different expense structure. Direct Plan shall have a lower expense ratio excluding distribution expenses, commission expenses etc.
Taxation:
For taxation, please refer the link : https://bit.ly/46xQzi1
Bandhan Balanced Advantage Fund
(Scheme Risk-o-meter)
NIFTY 50 Hybrid Composite debt 50:50 Index
(Tier 1 Benchmark Risk-o-meter)
This product is suitable for investors who are seeking* :
- To create wealth over long term.
- Dynamic allocation towards equity, derivatives, debt and money market instruments.
What is the Difference Between Balanced Funds and Balanced Advantage Funds?
Balanced Funds: These hybrid funds invest in both equity and debt, typically within a 40%-60% allocation range for each asset class, with a minimum allocation of 40% in either..
Balanced Advantage Funds: BAFs are also hybrid funds that invest in equity and debt, but they are not required to follow a fixed allocation ratio. They are highly flexible and can switch between asset classes according to market conditions. This is why balanced advantage funds are also known as dynamic asset allocation funds.
Balanced Funds Returns: Balanced Funds Returns: Due to balanced funds’ fixed asset allocation, returns may be limited in volatile market conditions.
Balanced Advantage Funds Returns: The flexibility to adjust allocations allows for the possibility of higher returns, even during volatile markets. .
Who Should Invest in BAF Funds?
Balanced advantage funds are ideal for long-term investors. With their dynamic asset allocation strategy, it’s advisable to stay invested for at least five years.
Taxation of balanced advantage funds may be subject to long-term capital gains tax, though certain exemptions might apply depending on the investment duration.
Balanced advantage funds fall under the moderate to high-risk category and are better suited for investors who are comfortable with taking risks.
FAQs on Balanced Advantage Funds
What is balanced advantage fund growth?
Balance advantage funds are a type of hybrid fund which engage in dynamic asset allocation. They invest in equity, derivatives, debt and money market instruments and change the asset allocation according to present market conditions. Thus, they are also known as dynamic asset allocation funds.
What is the difference between balanced funds and balanced advantage funds?
Balanced funds and balanced advantage funds are both different category of fund under hybrid funds which invest in equity and debt. However, one key difference is the mandated ratio of asset allocation. Balanced funds allocate their assets in equity and debt within the range of 40%-60%. The minimum allocation limit for both is 40% and maximum is 60%. Whereas, Balanced advantage funds are flexible and can change their asset allocation depending on the present market conditions
What is the difference between a dynamic asset allocation fund and Balanced Advantage fund?
Balanced advantage funds are also known as dynamic asset allocation funds. These funds invest in equity and debt instruments and have the freedom to dynamically change their asset allocation depending on the market conditions. Consequently, the term balanced advantage funds may be used synonymously with dynamic asset allocation funds.
What is balanced advantage fund taxation?
Equity oriented balanced advantage funds with a holding period of more than a year may be subject to long-term capital gains tax at 10% on gains exceeding 1 lakh. BAF funds with a holding period of less than a year are subject to short-term capital gains and taxed at 15%. Non-equity oriented balanced advantage funds are included in your total taxable income and taxed as per your income tax slab.
Is Balanced Advantage fund risky?
Balanced advantage funds can be associated with moderate to high levels of risk. These funds invest in equity and debt instruments and consequently carry the inevitable risks associated with them. The level of risk may nevertheless depend on several other factors such as the investment strategy and asset allocation.
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