Get Better Equity Allocation With Balanced Advantage Funds

Conservative investors are in a difficult situation. Low returns may be fine, but nobody wants negative returns. In a low interest rate regime, when the fixed deposit rates are hovering around 5 per cent and the inflation rate is higher, conversative investors are essentially losing their money as the real rate of return is negative. This is at a time when most people are boasting of their stock market returns. As investors, we often fall prey to our own behavioural biases. At a time when the stock market is steadily rallying, it is close to impossible to trim equity allocation because the investor fears on missing out potential gains if the market rally continues. Conversely, if any investment calls for booking losses, that again turns out to be challenging as one hopes that there will be a change in fortune in the near future. Because of our inability to take decisions at such times...