ADVANTAGE OF BALANCED ADVANTAGE FUNDS

Equity: Allocation to equity has the potential for growth, which can help boost returns

Debt: Allocation to debt counters the risk of equities and brings in stability to the portfolio

Arbitrage or derivatives: A strategy adopted by the fund as stated in the objective to manage the dynamic asset allocation and rebalancing model

Diversification: You get the benefit of diversification, which helps in managing the overall portfolio risk

Convenience: You need not look for rebalancing your portfolio as this fund helps in dynamic rebalancing

Tax efficiency: These funds are classified as equity-oriented funds for the purposes of taxation and thereby, capital gains are taxed at 10 per cent (without indexation) if investments are held for more than 12 months and at 15 per cent if investments are held for up to 12 months