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

Balanced advantage fund (dynamic asset allocation)

SEBI defines this category as: “investment in equity/debt that is managed dynamically.” No minimum or maximum equity/debt allocation percentage is prescribed by SEBI. AMCs define their own internal allocation models (often based on valuation metrics such as Price-to-Earnings ratio, Price-to-Book ratio, or yield spread indicators) and disclose this model in the scheme’s offer document.

Equity Allocation on WebNotes

Balanced advantage fund vs aggressive hybrid fund

SEBI definitions

Balanced advantage fund (dynamic asset allocation)