To Create The Perfect Mix

With the promise that their dynamic asset allocation will help tide over the  current market volatility, balanced advantage funds (BAFs) have shot to fame recently. As on December 2021, BAF has taken over all other mutual fund categories in terms of size, with assets under management (AUM) of Rs 1,69,739.59 crore, according to data from the Association of Mutual Funds in India (Amfi). In 2021 alone, five BAFs were launched and garnered Rs 21,652 crore. These funds promise to be the one-pot biryani meal, combining equity and debt into one and taking care of asset allocation on behalf of the investors, who would neither need to constantly keep an eye on the changing market dynamics nor worry about the tax hit a switch between equity and debt entails. But are these funds truly dynamic? Do they deliver all that they promise? Does it make sense to dive into these when individual equity...