Balanced advantage funds (BAFs) or dynamic asset allocation funds (DAAFs) gained prominence after investors were hit by sharp market swings in 2020—the swift market decline seen up till March 2020, followed by the rally thereafter.
The fall in the markets from its October 2021 peak gives an opportunity to gauge the performance of these funds, especially since BAFs/ DAAFs rely on asset allocation—shifting between equity and debt, depending on what is expected to deliver better for the investor. And the period since October has been marked by a combination of choppy equity markets and falling debt returns.
