Question 1

What is a balanced advantage fund?

Accepted Answer

A balanced advantage fund is a type of hybrid mutual fund that dynamically manages its investments between equity (stocks) and debt (bonds) based on prevailing market conditions. The fund adjusts its allocation to optimize returns while managing risk, aiming to provide potential growth with lower volatility compared to pure equity funds.

Question 2

What is the difference between multi-asset or balanced advantage fund?

Accepted Answer

A multi-asset fund invests across three or more asset classes-usually equity, debt, and alternative assets like gold or real estate-maintaining a pre-defined allocation to each. In contrast, a balanced advantage fund primarily switches between equity and debt dynamically based on market conditions, without necessarily including other asset classes like gold.

Question 3

What is Tata Balanced Advantage Fund?

Accepted Answer

Tata Balanced Advantage Fund is a dynamic asset allocation fund managed by Tata Mutual Fund. It invests in a mix of equities and fixed income instruments, with allocations regularly adjusted using in-house quantitative models to balance risk and return according to market conditions.

Question 4

How does dynamic asset allocation work in Tata Balanced Advantage Fund?

Accepted Answer

The fund employs a dynamic asset allocation strategy, which means it increases equity exposure when markets are undervalued and reduces it when markets are overvalued, shifting those assets into debt or cash. This approach relies on quantitative models that consider various market parameters to decide the optimal allocation between equity and debt, based on market conditions.

Question 5

Is Tata Balanced Advantage Fund suitable for volatile markets?

Accepted Answer

Yes, Tata Balanced Advantage Fund is designed to handle volatility. By dynamically shifting between equity and debt, it helps cushion the impact of sharp market movements and aims to deliver more potential returns, making it suitable for investors who wish to reduce the effect of market ups and downs.

Question 6

Who should consider investing in Tata Balanced Advantage Fund?

Accepted Answer

This fund is suitable for high-risk investors seeking long-term potential wealth creation with lower volatility than pure equity funds. It works well for those who want professional assistance in asset allocation and prefer not to time the market themselves.

Question 7

What are the benefits of investing in Tata Balanced Advantage Fund?

Accepted Answer

Dynamic rebalancing reduces the impact of market volatility by adjusting allocation between equity and debt.
Potential returns by balancing equity growth with debt relative stability.
Professional fund management and objective-driven allocation.
Tax efficiency due to equity-oriented nature of the fund.
Convenient for investors who want hands-off asset allocation.

Question 8

What benchmark does Tata Balanced Advantage Fund follow?

Accepted Answer

Tata Balanced Advantage Fund typically tracks a hybrid index benchmark such as the CRISIL Hybrid 50+50 - Moderate Index (TRI) to compare its performance.

Question 9

How does Tata Balanced Advantage Fund manage market ups and downs?

Accepted Answer

The fund uses a quantitative model to adjust its allocation between equity and debt based on valuations and market trends. By reducing equity exposure in overheated markets and increasing it when markets are undervalued.

Question 10

How to start SIP in Tata Balanced Advantage Fund?

Accepted Answer

You can begin a Systematic Investment Plan (SIP) in Tata Balanced Advantage Fund by visiting the Tata Mutual Fund website, using their app, or by contacting a registered mutual fund distributor.

Key Measures**	Fund	Benchmark
Standard Deviation	6.52	7.02
Sharp Ratio	0.85	0.91
Portfolio Beta	0.88	NA
R Squared	0.95	NA
Treynor	0.53	NA
Jenson		NA

Portfolio Macauley Duration
Modified Duration
Average Maturity
YTM*	NA

				Current value of ₹10,000 invested
	Annualized (%)	CRISIL Hybrid 50+50 - Moderate IndexBenchmark(%)	Nifty 50 TRIAdditional Benchmark(%)	Annualized (%)	CRISIL Hybrid 50+50 - Moderate IndexBenchmark(%)	Nifty 50 TRIAdditional Benchmark(%)
Since Inception	13.36%	12.57%	15.22%	₹22,618	₹21,613	₹25,146
Last 5 Years	14.70%	13.44%	18.88%	₹19,864	₹18,796	₹23,751
Last 3 Years	12.97%	12.27%	14.29%	₹14,433	₹14,165	₹14,946
Last 1 Year	2.23%	3.64%	0.54%	₹10,223	₹10,364	₹10,054

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