Add flexibility to your portfolio with Aditya Birla Sun Life Balanced Advantage Fund
Aditya Birla Sun Life Balanced Advantage Fund is an open ended Dynamic Asset Allocation fund that invests in a mix of equity & equity related securities as well as fixed income securities (Debt & Money Market securities) following a P/E based approach.
The primary objective of the Scheme is to generate long term growth of capital and income distribution with relatively lower volatility by investing in a dynamically balanced portfolio of Equity & Equity linked investments and fixed-income securities. There can be no assurance that the investment objective of the Scheme will be realized.
The fund follows a blend of top-down approach and bottom-up approach to identify potential growth sectors as well as individual stocks. The fund seeks out opportunities across market capitalisations.
A P/E based approach is followed to determine equity exposure. When the markets move towards an overvalued scenario, equity allocation is reduced, and balance is invested in Arbitrage along with Debt & Money Market Instruments. The equity exposure can range anywhere between 65-100% depending on market outlook. This asset allocation is monitored monthly and rebalanced every quarter.
This strategy can help the fund to capitalise on a bull-run of the market creating long term wealth as well as help manage the downside at the time of a market correction. The fund also uses derivatives with an aim to manage risk of its equity portfolio.