Hybrid Mutual Fund: The ongoing West Asia conflict, involving the United States, Israel and Iran, has triggered market volatility prompting investors to navigate safer options.
Typically, investors seek a go-to investment vehicle and mutual funds always come to the rescue in times of crisis.
What is a balanced advantage fund?
Balanced advantage fund aims to offer investors with a balanced approach by dynamically managing their asset allocation between equity and debt instruments.
Based on the prevailing market conditions, fund managers can shift the allocation by combining quantitative models and market indicators.
What are the advantages of investing in balanced advantage funds?
– Based on market conditions, these funds can dynamically allocate their assets between equity and debt instruments. This allows them to seize growth opportunities and outperform traditional equity funds.
– Balanced advantage funds are known for their reduced volatility compared to pure equity funds. These funds incorporate a mix of asset classes to offer a smoother investment experience, removing the impact of market fluctuations.
– These funds offer the advantage of dynamic asset allocation, ensuring that the portfolio remains aligned with prevailing market trends.
– Investing in balanced advantage funds can provide tax benefits.
What are the disadvantages of investing in balanced advantage funds?
– One of the major disadvantages is the relatively higher expense ratios associated with these funds.
– Due to their active management approach and the expertise required to dynamically allocate assets, balanced advantage funds tend to be more expensive than passively managed funds.
FY26 equity mutual fund winners
In FY26, the top-performing equity mutual funds delivered decent returns, several schemes’ returns exceeding 40 per cent.
During this period, there were around 553 equity funds, of which 253 generated positive returns for investors, and eight funds have recorded returns exceeding 50 per cent in this financial year.
The list of funds provided below is based on the ratings assigned by ACE MF.
Nippon India Taiwan Equity Fund, ICICI Pru Strategic Metal and Energy
The Nippon India Taiwan Equity Fund, ICICI Pru Strategic Metal and Energy equity FoF were two funds that delivered triple-digit returns.
These funds have generated returns of 164.02 per cent and 101.22 per cent in FY26.
DSP World Mining Overseas Equity Omni FoF
The DSP World Mining Overseas Equity Omni FoF has delivered a return of approximately 81.73 per cent over the specified timeframe.
Mirae Asset Global Electric & Autonomous Vehicles Equity Passive FOF
The Mirae Asset Global Electric & Autonomous Vehicles Equity Passive FOF has delivered a return of 60.19 per cent in FY26.
The HSBC Brazil Fund has delivered a return of 59.34 per cent so far in the current financial year.
The DSP Global Clean Energy Overseas Equity Omni FoF has returned 57.82 per cent in FY26.
Edelweiss Emerging Markets Opp Eq. Offshore Fund
The Edelweiss Emerging Markets Opp Eq. Offshore Fund has delivered a return of 52.90 per cent during the specified period.
Edelweiss Greater China Equity Offshore Fund
The Edelweiss Greater China Equity Offshore Fund had delivered a return of 38.91 per cent during the said period.
HSBC Global Emerging Markets Fund and Kotak Global Emerging Market Overseas Equity Omni FOF
(Disclaimer: The above article is meant for informational purposes only and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money related decisions.)