Balanced Advantage Funds cap losses amid market’s bear run

Balanced advantage funds or dynamic asset allocation funds, which invest between 20% and 90% of their corpus in equities based on a mix of fundamental and technical parameters, have managed to contain losses better than plain vanilla equity schemes. Meant for risk-averse investors, these schemes reduce volatility in the portfolio and preserve capital in the case of a sharp fall. The Nifty has lost almost 34% from its peak on January 20. In the past three months, the best performing funds in the category have lost 10-15%.

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