Key Points
For, what is at play now for the last nearly one year is the sideways market, where neither buyers nor sellers gain a significant advantage, as are Balanced Advantage Funds (BAFs)..
This is impressive, compared to the -1.5% and -3% returns generated by broader market index Nifty 50 and category average of flexi-cap funds, respectively..
Edelweiss BAF is among the few funds that follow a momentum-based model to decide asset allocation..
The reason we added the momentum model is because, at the end of the day, we believe that the wisdom of crowd or the market is supreme," said Ashutosh Bhargava, fund manager of Nippon BAF..
Those who want lower volatility with reasonable growth of the portfolio, investors with medium term investment horizon of 3-5 years and willing to have exposure to equity and those in the post-retirement phase with 15-20 years runway ahead with requirement of periodical incomethese are the investors BAFs are most suitable for," said Harshad Chetanwala, a registered investment advisor..
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