Edelweiss Balanced Advantage Fund

The Edelweiss Balanced Advantage Fund is a hybrid scheme that dynamically allocates its assets between equity and debt. It was launched on 20th August 2009 by Edelweiss Mutual Fund.

The Edelweiss Balanced Advantage Fund distributes the majority of its equity investments across the finance, IT, chemicals, auto and auto ancillary, and energy sectors. Its debt investments are distributed across AAA-rated bonds and similar securities. It is managed by Bhavesh Jain, Bharat Lahoti for the equity portion, and Rahul Dedhia for the debt portion.

The scheme’s objective is to attain long-term capital appreciation with relatively lower fluctuations in value. It aims to achieve its objective by adjusting its portfolio composition between equity and debt securities based on prevailing market conditions. It endeavours to increase exposure to equities during upward-trending markets and switch to debt securities during downward-trending markets.

Under normal circumstances, the scheme allocates a minimum of 65% of its assets toward equity and equity-related instruments, with the flexibility to allocate up to 35% of its assets toward debt securities, REITs, and InvITs.

Pros & Cons

How to invest in Edelweiss Balanced Advantage Fund?

5paisa makes it simple and convenient for users to invest in the Edelweiss Balanced Advantage Fund Direct-Growth. The procedure is straightforward, can be finished quickly, and does not include any paperwork at any point. Invest a few minutes in carrying out the steps listed below:

Step 1 – Login to 5paisa. If you do not have an account, you can register and create a new one right away.

Step 2 – Once logged in to your account, you can search for the preferred Edelweiss Mutual fund scheme. Alternatively, you can view All Mutual Funds and choose Edelweiss AMC from the filter.

Step 3 – Select the Best fund according to your criteria.

Step 4 – If you wish to invest a lumpsum amount, click on “One-Time”. Alternatively, you can start an SIP by clicking on “Start SIP”.

Step 5 – Once you have made the payment, you will see the investment status in your orderbook.

And you are done! Your Edelweiss Mutual Fund Investment with 5paisa is complete, and you can enjoy the returns!

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What is the expense ratio of the Edelweiss Balanced Advantage Fund?

When referring to the Edelweiss Balanced Advantage Fund Direct-Growth or any other mutual fund, the word “Expense Ratio” refers to the fund’s annual operating expenses as a percentage of its total assets, which can impact a scheme’s returns for investors. A lower expense ratio usually means the fund is less costly and may generate higher returns for the investors.

Who should invest in Edelweiss Balanced Advantage Fund?

The Edelweiss Balanced Advantage Fund is suitable for investors looking to build wealth over the long term and preserve capital in the medium term. It is designed for those seeking a balanced investment approach that primarily invests in equity and equity-related securities, including through arbitrage opportunities, with limited exposure to debt and money market securities.

The Edelweiss Balanced Advantage Fund is a top performer in its category, consistently delivering returns near its benchmark, the NIFTY 50 Hybrid Composite Debt 50:50 Index. With a Compound Annual Growth Rate (CAGR) of approximately 12.2% since its inception, the scheme has demonstrated strong annualized growth performance.

The scheme is well-suited for investors with a long-term investment outlook of at least 5 years and a very high-risk appetite. It is important to note that the scheme may experience negative returns in the short term and is, therefore, unsuitable for those who are risk-averse or seeking short-term investment options.

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

● Investing in the Edelweiss Balanced Advantage Fund provides the advantage of a balanced portfolio that invests in strong businesses, mainly large-cap companies on the equity side, and high-quality AAA-rated bonds and related securities on the debt side, offering stability and dependable returns.
● The scheme adopts high equity exposure during bull markets and makes quick adjustments to equity levels during bear markets. This approach provides both the opportunity to capture the gains in bull markets and the protection against losses in bear markets, giving investors the best of both worlds.
● The scheme’s performance has closely tracked its benchmark since launch, making it one of the top performers in the hybrid scheme category.
● The Edelweiss Balanced Advantage Fund has a positive track record, as it has never posted negative returns on either a 3-year or 5-year rolling basis. On average, it has achieved returns of around 10.56% and 10.60% over these periods, respectively.
● The scheme follows an unbiased asset allocation approach guided by its distinctive Pro-cyclical model. The fund managers primarily focus on stock selection, avoiding discretionary decisions influenced by intuition.