Balanced advantage funds (BAF), which emerged as an investor favourite in the latter part of 2021, have hit a rough patch in terms of attracting inflows. In the past four months, investors have pulled out a net Rs 2,680 crore from the hybrid mutual fund (MF) offering.
This comes even as the equity market remains volatile and debt yields are elevated — a scenario suited for investment in BAFs.
Industry executives and MF distributors say outflows could be a result of investor dissatisfaction with certain schemes, bank fixed deposits (FDs) becoming attractive, and a decline in lump sum flows into MFs.
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