Ch.2 · Mutual Fund Structure Basics · medium

What is a Balanced Advantage Fund (BAF) also known as Dynamic Asset Allocation Fund?

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EXPLANATION

A Balanced Advantage Fund (BAF) / Dynamic Asset Allocation Fund dynamically manages the equity-debt allocation based on market valuation indicators (e.g., P/E ratio, P/B ratio). It increases equity when markets are cheap and reduces it when markets are expensive.

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