Cushioning the blow: Low on equities, hybrids withstand market turmoil

BAFs decline 2.7% on average compared to a 5.4% fall in Nifty 50

Hybrid fund managers' decision to cut equity exposure over the past few months paid off. 
 

Majority of the balanced advantage and multi-asset funds — hybrid offerings that offer highest flexibility to fund managers — managed to offer significant downside protection during the latest downturn.

Data from Association of Mutual Funds in India (Amfi) shows that on an average balanced advantage funds (BAFs) declined 2.7 per cent, half of the 5.4 per cent fall seen in Nifty 50,during the six-session period ending October 7.

BAFs invest in equity and debt with the allocation to the two asset class