Investors’ sentiment are as changeable as the cycles in equity markets, which are volatile by nature and fluctuate as part of a particular market cycle and shifts in macro-economic conditions. If investments are driven by emotions or biases, the investor might suffer capital loss from unworthy investments, ad-hoc decisions, and inappropriate asset allocation.<\/p>\n\n\n\n

Many a times, investors end up with a higher exposure to equities when they focus on earning higher returns rather than portfolio balance, stability, and risk management. This increases the chance of your portfolio underperforming in unpredictable market conditions. Many risk-averse investors are now willing to invest in equities after the market outperformance in recent times.<\/p>\n\n\n\n

In addition, young investors with years ahead of them to achieve their financial goals are looking for investment solutions that could provide downside protection without compromising on the return potential.<\/p>\n\n\n\n

Mutual funds offer a category called Balanced Advantage Funds that provide capital appreciation with an allocation to equities while maintaining portfolio stability through debt.<\/p>\n\n\n\n

Balanced Advantage Funds aim to generate capital gains, primarily through dynamic management of equity allocation as per varying market conditions; as well as provide stability and regular income through exposure to fixed income instruments. Dynamically managed debt and equity portion of such funds help in reducing the volatility when the equity markets turn unfavourable.<\/p>\n\n\n\n

Investing in these funds can prove to be beneficial for conservative investors looking for a dynamic solution with the right mix of equity and debt with a minimum investment horizon of 3 years. SBI Mutual Fund<\/a> has launched SBI Balanced Advantage Fund<\/strong>. It is an open-ended dynamic asset allocation fund.<\/p>\n\n\n\n

On the launch of this Mr Vinay M. Tonse, MD and CEO of SBI Mutual Fund said, “We are happy to launch SBI Balanced Advantage Fund at a very opportune time, when equity markets are primarily getting driven by ample global liquidity. Our new fund offering would follow a 3-tier investment strategy to evaluate the optimal asset allocation across equity and debt based on robust economic and market indicators. SBI Balanced Advantage Fund would help investors to fulfil their asset allocation needs and I am confident that the fund would be a very suitable investment option for investors, particularly those who are risk-averse but at the same time are looking for long term wealth creation and want to cushion their investments from volatile market situations.”<\/em><\/p>\n\n\n\n

Table 1: Details of SBI Balanced Advantage Fund<\/em><\/strong><\/p>\n\n\n\n