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The best fund category to promote long term investmentsRadhika Gupta, Edelweiss Asset Management,

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Key Take-Aways
  • A basic need for many investors is moderate returns with limited volatility - BAF category addresses this need very well

  • Most years, markets are volatile and we do see a 10-15% drawdown some time during the year. BAFs help smoothen the investor experience in such volatile times

  • For fund managers, BAFs offer maximum flexibility compared to all other product categories. This offers managers much better opportunities to allocate across assets and securities

  • Very few investors are able to stay invested in equity funds for 10-15 years as they get unnerved by the interim volatility. BAFs actually help promote long term investing more than pure equity funds.

  • BAF models either adopt a pro-cyclical or a counter-cyclical approach. Both are relevant. Pro-cyclicals typically do better in trending markets

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Comments Posted
Anita KANBARGI ARN NO :28230 Belgaum, 24 Oct 2018

Clear explanation. Thank you madam

viran patel ARN NO :viran patel Vadodara, 23 Oct 2018

BAF is combination of likely FD plus Equity... it is one form Asset Allocation, no need to time market and benefiting investors in all times of may

Vinay Kumar Laxman ARN NO :ARN-89615 Bangalore, 18 Oct 2018

Volume is very low. Please record with higher volume

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