This Balanced Advantage Fund Offered Good Returns In Its Category; Learn More

Balanced Advantage or Dynamic Asset Allocation funds put your money in a mix of stocks and bonds with no defined allocations. Balanced funds are designed for investors who want a combination of income, safety, and moderate capital growth. Due to the equity component, the fund will be able to earn larger returns during bull markets. During downturn markets, however, the debt component acts as a buffer, preventing fund returns from eroding. This balanced advantage fund offered good returns on long-term investments, and also offered good returns on the sip.

Union Balanced Advantage Fund- Direct-Growth

NAV	Fund Size	Expense Ratio
₹15.33	₹ 1797.93 Cr	0.79%

NAV as on 23 February 2022

Union Balanced Advantage Fund Direct-Growth is an open-ended Hybrid Dynamic Asset Allocation mutual fund scheme from the house of Union Mutual Fund. It is a small fund of its category, launched on 29 December 2017. Fund's Direct-Growth has Rs 1,798 Cr AUM as of 31 January 2022. The fund has an expense ratio of 0.79%, which is higher than what most other Dynamic Asset Allocation funds charge. The minimum investment for lump sum payment of Rs 1000 and for SIP is Rs 1000 is required to start investing in the fund. The has no lock-in period. The fund's Direct-Growth plan has the capacity to produce consistent returns, which is comparable to other funds in its category. It has an above-average capacity to control losses in a sinking market.

Returns

Union Balanced Advantage Fund Direct-Growth returns of the last 1-year are 7.81%, which is less than its category average in the same investment horizon. However, in 2 years and 3 years, and ever since its launch, performed better than its category average returns. It has delivered 10.83% average annual returns since its inception.

Lump-Sum Returns

Period Invested for	Absolute Returns	Annualised Returns	Category Avg
1 Year	7.81%	7.81%	10.55%
2 Year	33.65%	15.52%	12.45%
3 Year	49.41%	14.29%	12.58%
Since Inception	53.30%	10.83%	9.41%

Sip Returns

Period Invested for	Absolute Returns	Annualised Returns
1 Year	2.92%	5.41%
2 Year	16.86%	15.69%
3 Year	24.80%	14.88%

Portfolio

The fund invests 66.91% of its assets in Indian equities, with 52.94% in large caps, 8.32% in mid-caps, and 1.39% in small caps. The fund has a debt investment of 19.81%, with 12.43% in government securities and 7.38% in funds that invest in very low-risk assets.
The fund's debt part has a low credit rating, implying that the borrowers to whom it has given money are of poor quality. The equity part of the fund is predominantly invested in the financial, technology, energy, automotive, metals, and mining industries. When compared to other funds in the category, it has taken less risk in the financial and technology industries. ICICI Bank Ltd., Reliance Industries Ltd., HDFC Bank Ltd., and Infosys Ltd. are the top five holdings of the fund.

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.