Balanced advantage fund equity exposure off lows as valuations improve

In the case of ICICI Prudential BAF, the net equity exposure was 47 per cent last month compared to a low of 31.4 per cent in August 2024

The net equity exposure of balanced advantage funds (BAFs) are off their lows as the equity market correction has eased valuations.

  BAFs, which invest in both equity and debt, mostly determine the equity allocation through valuation metrics.

 

Most offerings cut their equity allocation as valuations go up and vice-versa. 

The largest scheme in the category, which manages nearly ₹1 trillion, had a net equity exposure of 56.1 per cent at the end of February 2025. The exposure had dropped below 50 per cent in August 2024.

  In the case of ICICI Prudential BAF, the net equity exposure was 47