Balanced advantage funds rise on MFs' popularity charts

Equity-oriented dynamic asset allocation funds make up nearly a fifth of the balanced category

Equity-oriented funds with an in-built dynamic asset allocation are the new emerging category in the growing mutual funds industry. With India's stock markets at record highs, a trend is being seen among investors opting for schemes that offer asset allocations, largely known as balanced funds.

However, within the balanced category of funds, the subset of balanced advantage funds, which are largely open-ended equity-oriented schemes, are putting on a strong show. Since these schemes allocate funds to equity and debt instruments and arbitrage on a daily basis, given the market levels, they cushion investors from volatility. Plain balanced funds, on the