Balanced advantage funds find favour with investors amid volatility spike

Rising bond yields, uncertain equity markets add to appeal

Investors are increasingly choosing to invest in balanced advantage funds amid a spike in volatility, due to concerns around rising inflation. Experts said rising bond yields and uncertain equity markets following the sharp run-up are adding to the appeal of such funds, which dynamically change asset allocation between equity and debt depending on market conditions.

The data from Association of Mutual Funds in India (Amfi) shows that since the start of the current financial year, balanced advantage funds have seen net inflows of over Rs 29,300 crore.

In August, alone the category had seen inflows of Rs 16,571 crore. The