When it comes to investing in financial markets, it can be very tricky, especially when volatility and unpredictability are at their peak. This is due to the fact that most investors are usually worried whenever there is volatility in the market. In such situations, the HDFC balanced advantage fund is one of the perfect solutions to take up. Since the fund is of the equity type but has flexibility in its asset allocation- mainly between equity and debt, it represents growth and stability. It would be suitable for a volatile environment. The following article looks at the strengths of the HDFC Balanced Advantage Fund to deal with the variability of the market situation.
Functional Operation of HDFC Balanced Advantage Fund
This makes the HDFC Balanced Advantage Fund very flexible to the current market volatility. It is mainly active in equity and debt securities, with changes in the proportion depending on the valuation of the securities. In the course of markets, it inclines towards equity to opt for growth the emerged prospects. On the other hand, when the markets are bearish it moves to the debt form to protect returns.
Advantages During Flooding
Money can easily disappear if put in the wrong investment, especially with volatile markets. The HDFC Balanced Advantage Fund does it by going for a balanced approach. Depending on equity and debt, there is avoidance of extreme fluctuations in market positions due to changed environmental circumstances.
In addition, the fund is operated by skilled personnel who are aware of changes in the market. Their skills guarantee relevant changes to the portfolio as and when it is due to lock out investors from undue risks while at the same time grabbing opportunities. This makes it suitable during unsettled times since it is bound to produce results.
Difference Between HDFC Balanced Advantage Fund and HDFC Flexi Cap Fund
Although both funds are divided for those investors who are in search of growth, the target differs here. The HDFC Flexi Cap Fund also has its investment in equity alone, and it covers large-cap, mid-cap and small-cap stocks. It is ideal for risk-tolerant investors seeking a high chunk of returns on investment.
However, the HDFC Balanced Advantage Fund is relatively more conservatively positioned since it’s both growth-oriented and stable due to its equity-debt ratio. For those who take precautions when the market is unstable, the Balanced Advantage Fund is less risky.
Conclusion
Due to stock fluctuation, HDFC Balanced Advantage Fund can be a wise way to manage investment. Its ability to alter its portfolio’s asset exposure makes it possible to have high growth as well as limit risk.
However, for those who are searching for a safe investment instrument to avoid unreasonable risks in the stock markets, this fund is a perfect choice. When combined with the HDFC Flexi Cap Fund, on which this article insists on investing aggressively, it gives a solid base for wealth accumulation in the long run, even when considered on its own.
