Choosing a balanced advantage fund? Look beyond returns to strategy, risk

Last Update Date: 05-10-2026

Published by Business Standard

Abhishek Kumar's role: Quoted

Abhishek Kumar pointed out that heavy bets on a few sectors make a fund more volatile and that credit risk in the debt portion can weaken downside protection. He suggested comparing rolling risk-adjusted returns over full cycles and holding such funds for at least three to five years.

With balanced advantage funds raising their equity exposure, the article explains what investors should check beyond past performance. It covers the allocation models these funds use, historical equity ranges, portfolio construction, debt credit quality, risk measures such as downside capture and the Sharpe ratio, and warning signs like strategy drift.

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Choosing a balanced advantage fund? Look beyond returns to strategy, risk

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