This Balanced Advantage Fund Has Given Over 20% Returns On 3-Years SIP

A combination of stock, debt, and arbitrage is invested in Balanced Advantage Funds. They modify the stock allocation dynamically in response to market valuations. As a result, these funds are referred to as dynamic allocation funds. These funds are good for conservative investors since they minimise equity investment when prices are high. This particular Balanced Advantage Fund that we mentioned here has offered good returns on long term SIP.

Baroda BNP Paribas Balanced Advantage Fund - Direct-Growth

This Balanced Advantage Fund is open-ended launched on 14th November 2018 by the Baroda BNP Paribas Mutual Fund. The fund is a medium-sized fund of its category. The fund has worth Rs 3188.55 crore. The Fund has Rs 15.8338 Net Asset Value (NAV) declared on 13th May 2022. It has 0.59% expense ratio, which is below its category average expense ratio. 

It is a highly risky fund. The fund is rated 4-star by the CRISIL. Also, it has given the above average performance among peer funds. To start investment in this fund, the minimum amount required for lump-sum payment is Rs 5,000, 1,000 for additional investment, and Rs 500 for SIP. This fund doesn't have a lock-in period. It charges 1% for the redemption of units in excess of 10% of the investment within 365 days of the investment. 

The benchmark of this fund is the NIFTY 50 Hybrid Composite debt 50:50 Index. The fund's primary objective is to generate returns by investing in equities or equity-linked assets, with a secondary goal of generating income from debt and money market instruments. It also seeks to manage risk by allocating assets actively. 

Absolute And Annualised Returns

Lump-Sum Investment Returns

Since its launch, it has delivered 14.05% average annual returns.

Tenure	Absolute Returns	Annualised Returns
1 Year	5.42%	5.40%
2 Year	47.70%	21.53%
3 Year	51.38%	14.81%
Since Inception	58.34%	14.04%

SIP Returns

Tenure	Absolute Returns	Annualised Returns
1 Year	-4.00%	-7.33%
2 Year	8.03%	7.64%
3 Year	20.50%	12.50%

Portfolio

The fund is invested in equities to the tune of 65.3 per cent, with 47.69 per cent in large-cap stocks, 6.7 per cent in mid-level stocks, and 6.68 per cent in small-cap stocks. The fund has a debt investment of 26.49 per cent, with 19.97 per cent in government securities and 6.52 per cent in funds with very low-risk securities. The financial, technology, services, healthcare, and energy industries dominate the equity part of the fund. The fund's debt portion has a low credit rating, meaning that the borrowers to whom it has borrowed money are not of high quality. Government of India, Reliance Industries Ltd., Infosys Ltd., ICICI Bank Ltd., and Sun Pharmaceutical Industries Ltd. are among the fund's top holdings.

Disclaimer

Mutual fund investments are subject to market risk. Read all scheme related documents, and Terms and Conditions carefully before investing. The above-mentioned information is purely informational and doesn't guarantee any return. The Greynium Information Technologies and the Author are not liable for any losses caused as a result of a decision based on the article.