Amidst the diverse options available for investment, Edelweiss Balanced Advantage Fund has emerged as a beacon of success for investors. Launched in 2009, this fund has captured the attention of the investment community with its impressive performance, strategically balancing equity and fixed income investments.
The Journey of Edelweiss Balanced Advantage Fund:
The journey of Edelweiss Balanced Advantage Fund has been marked by consistent growth and strategic investment decisions. In its 15 years of existence, the fund has delivered an exceptional return of 11.36% since its inception, showcasing the potential to turn a monthly SIP of ₹10,000 into a substantial corpus of ₹50 lakh.
Unveiling the Performance:
With a disciplined approach to investment, the fund has yielded remarkable returns, with an annualized return of 26.45% in the last year. Over longer periods, the fund has demonstrated annualized returns of 13.44% over three years, 17.02% over five years, and 13.12% over seven years, and 11.91% over ten years, as per data from Value Research.
Asset Allocation and Portfolio:
The fund’s asset allocation strategy exhibits a diversified approach, with 75.63% allocated to equity, 18.31% to debt, 5.85% to cash and cash equivalents, and a marginal 0.22% investment in real estate. Furthermore, the portfolio includes notable investments in entities like REC Ltd, Government of India securities, Export-Import Bank of India, HDB Financial Services, and Small Industries Development Bank of India (SIDBI), in accordance with Value Research data.
Current Standing and Expense Ratio:
As of August 23, 2024, the Net Asset Value (NAV) of the Edelweiss Balanced Advantage Fund stands at ₹50.34, with assets under management (AUM) of ₹12,117 crore as of July 31, 2024. Additionally, the fund’s expense ratio stands at 1.69%, encompassing the management costs and investment strategies.
Insight into Investment Strategy and Suitability:
The fund’s investment strategy revolves around arbitrage opportunities, equity derivative strategies, pure equity investments, and a balanced approach towards debt and money market instruments. It caters to investors with varying risk appetites, offering gains that outpace inflation rates while also providing relative stability during market downturns.
Conclusion:
Edelweiss Balanced Advantage Fund stands as a testament to the potential of disciplined investment and strategic asset allocation in achieving substantial wealth creation over time. Its performance and prudent investment strategies have positioned it as a noteworthy option for investors looking to build a strong financial portfolio.
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