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Balanced Advantage funds


The volatility of the stock market is overwhelming for most of us. Many of us wish lower volatility in our portfolio, even if it comes at the cost of some returns. The answer is ‘Balanced Advantage Funds’ wherein the equity exposure (large cap oriented) ranges between 30% to 80% (higher in cheaper markets), the average equity exposure is around 45% ie much lower volatility. These funds ‘buy low and sell high’. Holding for one year makes them long term ie only 10% tax on gains.