Balanced advantage fund

Tue, 12 May 2026 00:00:00 +0000

A balanced advantage fund (BAF) – formally categorised by SEBI as a dynamic asset allocation fund – is an open-ended hybrid scheme that dynamically manages the allocation between equity and debt instruments based on market conditions, valuation models, or other quantitative triggers, with no regulatory floor or ceiling on equity allocation. SEBI’s October 2017 scheme categorisation circular merged this category with the earlier “balanced advantage” label under the single heading “Dynamic Asset Allocation or Balanced Advantage”. Balanced advantage funds are among the largest hybrid fund categories by AUM in India, with several schemes managing over ₹50,000 crore each.

Balanced advantage fund vs aggressive hybrid fund

Tue, 12 May 2026 00:00:00 +0000

Balanced Advantage Funds (BAFs) and Aggressive Hybrid Funds are two distinct hybrid mutual fund categories defined by SEBI ’s October 2017 categorisation circular (SEBI/HO/IMD/DF3/CIR/P/2017/114). Both invest in a combination of equity and debt instruments, but differ in how the equity allocation is defined and managed.

SEBI definitions