Why I prefer Balanced Advantage Funds over Multi Asset Allocation Funds? Commodities go through very long cycles. As much as recent returns make you happy, they can go through a painful long bear cycle too. Multi asset fund mandates minimum investment in commodities all the
@dmuthuk 1️⃣ BAFs offer 0–100% flexibility across equity, debt & arbitrage. MAFs are stuck with commodities even in long bears. 2️⃣ Commodities have cycles; BAFs have freedom. 3️⃣ MAFs = fixed buckets. BAFs = full flexibility. Simple choice.
@dmuthuk No sir, if you go by SID of multi asset allocation funds, they have 0-35% commodities,0-35% debt and 65-100% equity. So if commodity stagnates, it is taken care by Debt or equity
@dmuthuk Excellent breakdown 👏 Flexibility is key in volatile markets — BAFs truly give that tactical edge.
@dmuthuk It depends on how the fund is managed, right sir? My BAF from last year is the worst so far, but maybe a year’s too early to judge.