Balance Advantage Funds

Investing in the mutual fund industry for many is to see their dreams come true after reading about the magic of compounding. Many investors have of late extended their portfolios by investing in many schemes offered by the mutual fund industry with the sole aim of earning more than the mundane FD and RD interest. Also, the Mutual fund industry over the past 10-15 years has given tremendously fabulous returns after beating inflation, thus allowing investors to make handsome money.

The problem with the Mutual Fund Industry:

Unfortunately, there are many terms used by the industry to let various investors park their money which might go as a toss to most of them if they do not understand them.

Firstly, there are debts and equity, and then comes its blend of them which is balance funds, then comes index funds and whatnot. Additionally, all fund houses have their own schemes which again creates further confusion for people to understand which is the choice for them and where can they maximize their returns.

Hence, it is better for us to understand these terms in detail as per your goals. In this article let us understand Balanced Advantage Fund

Who should opt for Balance Advantage Fund?

Firstly, before you pick any type of Mutual Fund, it is vital to understand why are you willing to pick a particular fund and what exactly should your goal be that the fund will at the end of its term achieve.

Hence, if you looking for one of the below options, a balance advantage fund is right for you:

  • You are naive about markets and willing to play safe.
  • If you have reached a stable age and want decent returns rather than expanding your risk solely into pure equity schemes.
  • You are looking for aggressive schemes than just simple debt schemes.
  • You want to limit your losses into equity and have a balanced scheme.
  • You want to make a considerable profit to scale up your retirement but at the same time be safe for emergency monetary needs.

If you fall under any of the above categories, read further to have a better understanding of the balance advantage scheme.

What are balance advantage schemes?

Balance advantage schemes are much safer and a better performing category of investment strategy where the fund manager invests a particular predetermined percentage into equity and remaining in the debt market to gain profits.

A balance advantage schemes hence have comprehensive exposure to schemes in a balanced manner so that investors can earn better returns than debt schemes. And along with it, balance advantage schemes earn a higher percentage as a particular sector of funds is invested in the equity market.

Why choose balance advantage schemes?

  • It has equity which grows faster
  • It has debts to control the thrill
  • It can easily manage volatility

People have seen a perfect blend of:

Capital appreciation + capital preservation + Volatility management

How do balance advantage schemes work?

  • They are actively managed by fund managers in a diversified way.
  • Debt equity adjustment is sorted before the scheme is launched in the market.
  • Earns a higher rate of return than other monetary instruments available in the market.

Advantages of Balanced Advantage Fund:

  • The asset class is calculated regularly monitored as balancing risk is extremely important here. As there is an equity exposure, fund managers pay attention if there is any risk rising in terms of market volatility.
  • Balance advantage fund is a perfect manner to make stable returns no matter the volatility in the market.
  • Balance advantage fund helps in building a huge corpus for retirement.
  • Different performing asset classes compensate for other low-performing asset classes.
  • The risk is diversified and hence suitable for breadwinners of the family.

How to pick a perfect AMC for investing balanced advantage funds?

  • Pick the AMC with substantial assets under management. This reduces the chances of default in terms of the redemption request.
  • Check the AMC’s track record of yearly scheme investment for 3, 5, and 7 years.
  • Understand the strategy of the fund manager and read the factsheet thoroughly.
  • Choose the AMC scheme which has outperformed the benchmark indices and at the end of the tenure can pay more even after subtracting inflation.

Available Balance Advantage Funds in the market today which are attractive to buy:

  1. SBI Balanced Advantage Fund

Currently, SBI Balanced Advantage Fund is a new fund offer, and therefore, the investors will be able to park money at merely 10 Rs a unit of the mutual fund. If you are willing to invest now, it is the best scheme to invest money in the long term.

Fund Manager: Gaurav Mehta

Minimum Investment: 5000 Rs

Launch Date: 12/08/2021

The objective of the scheme: The scheme is missioning to provide long-term capitalization by blending equity and debt to keep making stable profits.


  1. ICICI Prudential Balanced advantage fund

The scheme is an open-ended fund with dynamic asset allocation to earn a higher percentage of interest.

Fund Managers: Sankaran Naren, RajatChandak, IhabDalwai, Manish Banthia, RiteshLunawat, Sri Sharma.

The scheme has to date beaten inflation and has a track record of delivering 12.78% returns in the last 10 years.


  1. Kotak Balance advantage fund

Kotak has allocated its funds in equity, debt, and bond markets to widen its scope of investment.

Fund Managers: Abhishek Bisen and Harish Krishnan


The scheme has begun science 03/08/2018 and has seen quite a few ups and downs because of the world market. Along with being patient in their investment pattern, Kotak has in fact given 13.01% returns which are way more than PPF. Also, it has easily beaten inflation and thus a fantastic scheme to invest in.


If you are willing to invest now in Mutual Funds, contact us at for a better understanding of how this industry is growing and how to pick the best scheme for ourselves and still earn a huge corpus at the end.


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