Mutual funds are investment funds which are managed professionally. There are various types of mutual funds, equity and debt funds are the most popular among hybrid mutual funds. The dynamic allocation of investment between equity and debt is done using the Mirae Asset Balanced Advantage Fund.
Dynamic allocation refers to the process of shifting the funds from debt to equity and vice versa considering the stock prices. Since mutual funds are subject to market risk, a dynamic allocation ensures that you get the best of both worlds. To attain the benefits, investors these days are highly interested in Mirae Asset. Keep on reading if you want to know everything about the balanced advantage fund and its benefits.
As discussed above the money market instruments used in this scheme are dynamically allocated between debt and equity funds. With the help of a proprietary model, the fund managers monitor the market and decide the allocation.
In this scheme, market valuation levels are related to Price to Earnings and Price to Book levels of the Nifty 50 Index. Using these measures, the fund managers would calculate a composite score that is further used to determine the equity allocation. Moreover, the macro view of the market also plays a crucial role in the final allocation decision by the fund manager.
Hybrid mutual funds have no restrictions for allocation, there is no set limit for an asset class, thus depending on the market condition, investors can get the highest benefits through this scheme.
The optimum market participation ensures that the investor gains higher returns always. Moreover, the dynamic allocation ensures that the risk in this scheme is minimal.
Now that you know the countless reasons behind the popularity of this balanced advantage fund among investors. The next probably you want to know about the actual investment. One can start investing online or offline. There are many online platforms to begin the Mirae Asset SIP. For beginners, a long process of verification might sound too complicated. Based on your risk profile, you get the most suited investment suggestions from an expert.
However, if you are a beginner, it is suggested to get help from an expert or connect with an executive at Lakshmishree Investments & Securities Pvt Ltd. Talking to an investment advisor is a wise decision for first-timers because investments should be done after careful planning.
