3 Aug 2023
Investing can appear challenging and confusing for many investors, particularly for those who are new to this world or may have a low-risk appetite. However, most of us may realise that building on our wealth is important and want to take advantage through market investments. So, a lot many times, people wonder if there is a way to create a suitable mix of investment portfolio that may help harness the potential fruits of investment without the responsibility or tension around making the decision on where to invest and how much to invest.
Balanced Advantage Fund can be the answer to these concerns.
What is a Balanced Advantage Fund?
Balanced Advantage Fund is a type of an open-ended hybrid mutual fund scheme that invests in asset classes like Equity and Debt and keeps changing and managing asset allocation dynamically based on market valuations.
Simply explained, the investments in equity and debt are managed in a dynamic manner, such that there can be no or minimal potential harm, especially during markets ups and downs, from extreme market volatility and other risks such as movements in general interest rates etc. Let’s understand this fund category better with Kotak Balanced Advantage Fund.
Key features of Kotak Balanced Advantage Fund :
- This is a professionally managed active fund that aims to protect against market downsides and capture potential benefits when markets seem favourable.
- The fund is like an automatic solution which modifies exposure to equity and debt as per the changing market conditions.
- The fund has an equity allocation of 68.20% and a 31.80% allocation towards debt **.
- Equity allocation is based on a combination of market valuation and assessment of trend/sentiment data.
- Follows Business, Management and Valuation (BMV) model to identify high-quality stocks with a proven track record
- It follows the fundamental principle of buying more when markets are low and selling when markets are high.
All in all, the investors need not manually track and modify the asset allocation in their portfolio as per different market movements. The responsibility of managing the asset allocation of the Scheme is on the financial expert for a potentially dynamically balanced portfolio.
**https://www.kotakmf.com/mutual-funds/hybrid-funds/kotak-balanced-advantage-fund/reg-g; Data as on June 30, 2023. Details as per latest data available.
Kotak Mahindra Asset Management Company Limited (“KMAMC”) Internal research
The above risk-o—meter is based on the scheme portfolio as on 30th June, 2023. An addendum may be issued or updated on the website for new riskometer.
The document is not intended for distribution to or use by any person in any jurisdiction where such distribution would be contrary to local law or regulation. The distribution of this document in certain jurisdictions may be restricted or totally prohibited and accordingly, persons who come into possession of this document are required to inform themselves about, and to observe, any such restrictions.
The document includes statements/opinions which contain words or phrases such as "will", "believe", "expect" and similar expressions or variations of such expressions, that are forward looking statements. Actual results may differ materially from those suggested by the forward looking statements due to risk or uncertainties associated with the statements mentioned with respect to but not limited to exposure to market risks, general economic and political conditions in India and other countries globally, which may have an impact on services and/or investments, the monetary and interest policies of India, inﬂation, deﬂation, unanticipated turbulence in interest rates, foreign exchange rates, equity prices or other rates or prices etc. Investors should refer scheme information document of Kotak Balanced Advantage Fund for complete and detailed asset allocation details. Past performance may or may not be sustained in future. Investors may consult their financial advisor and/or tax advisor before making any investment decision. KMAMC/ Kotak Mutual Fund (KMF) is not guaranteeing or promising or forecasting any returns/future performance. For detailed portfolio and related disclosures for the scheme please refer our website https://www.kotakmf.com/Information/forms-and-downloads. The portfolio and its composition is subject to change and the same position may or may not be sustained in future. The fund manager may make the changes, as per different market conditions and in the best interest of the investors.
Mutual Fund investments are subject to market risks, read all scheme related documents carefully.