It is important to invest in funds. You must also pay certain tax when you invest. The BAF can be used in all seasons and is suitable for all market conditions. You can also invest more by not having to pay any tax.
The Wealth Optimiser plan is an open-ended balanced scheme. This plan’s main objective is to increase capital and distribute income to investors through various strategies such as pure equity investment strategy or arbitrage opportunities.
Equity markets are volatile. It is impossible to give any assurance about the future. Many financial advisors will recommend balanced-benefit fund schemes to their clients. These funds can be used to save money or invest in a great way. They also offer a lower risk tolerance, which can result in better returns for investors. They are protected from any downside risks. These balanced advantage funds also have the advantage that the capital of the investor will be exempt from taxation. The proper allocation for balanced advantage funds equity is around 65% or more. From the taxation perspective, these funds are treated the same as all equity funds.
For these balanced advantage funds, all dividends and long-term capital gains are exempt from tax. There are many plans and schemes in this category of balanced investment funds. Investors should choose the plan with a lower risk appetite. The balanced advantage funds have a lower risk profile than many other plans and schemes in the category of balanced investment funds. This can make them more conservative or saving-oriented. The equity allocation of money for the balanced advantage fund ranges from 30 to 80%. This is due to the large asset distribution strategy, which is largely determined by the book and price ratios of the vast equity market. As of now, the equity allocation for funds in the balanced advantage fund is 65%. This fund has a strong risk-adjusted performance that has been extremely consistent over many years. The AUM for the balanced advantage fund has experienced a remarkable growth of around 200%, which is twice as much.
Here are some benefits of investing in this fund.
- An all-weather fund is a fund that can be used in any market conditions.
- Ahead of Fixed Deposit (FD)
- This fund offers a money back option.
- 3 Funds in One
- Tax Benefit
- You can be exempted from any type of tax.