Balanced advantage funds raised their average net equity exposure from 52.65% in September 2024 to 64.98% in August 2026, a period that began when India’s Nifty 500 index peaked. The increase across 34 qualifying funds was 12.33 percentage points.
Key Takeaways
- Thirty of the 34 funds increased net equity exposure over the period.
- LIC MF Balanced Advantage Fund recorded the largest increase, at 30.72 percentage points.
- Net exposure excludes the portion of equity exposure hedged through derivatives.
Balanced advantage funds shift allocations
The figures cover balanced advantage and dynamic asset allocation funds with at least two years of history, using data from PrimeInvestor and fund-house factsheets. They compare allocations in September 2024 and August 2026 rather than fund returns over that period.
Union Balanced Advantage Fund had the second-largest increase among the schemes listed, followed by ICICI Prudential Balanced Advantage Fund. The changes show how much each fund’s net allocation rose, not its total allocation at the end of August 2026.
Five other funds recorded increases: SBI Balanced Advantage Fund by 23.5 percentage points, PGIM India Balanced Advantage Fund by 22.3, UTI Balanced Advantage Fund by 21.6, DSP Dynamic Asset Allocation Fund by 21.5 and ITI Balanced Advantage Fund by 19.7.
| Item | Details |
|---|---|
| LIC MF Balanced Advantage Fund | Net equity allocation increased by 30.72 percentage points. |
| Union Balanced Advantage Fund | Increased by 29.89 percentage points. |
| ICICI Prudential Balanced Advantage Fund | Increased by 26.62 percentage points. |
| HDFC Balanced Advantage Fund | Increased by 24.06 percentage points. |
| Baroda BNP Paribas Balanced Advantage Fund | Increased by 23.8 percentage points. |
What net equity exposure measures
Net equity exposure is the difference between a fund’s gross equity exposure and the portion hedged through derivatives, said Bhavana Acharya, co-founder and fund manager at PrimeInvestor.
The measure indicates how much equity exposure remains open to market movements after hedging. A higher net allocation means a larger share of the portfolio is exposed to those movements; it does not establish what caused an individual fund to change its allocation.
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Disclaimer
This FinanceVelix article provides general information, not personalized financial, investment, legal, or tax advice. Market prices, interest rates and economic conditions can change; investments carry a risk of loss. Facts reflect the material available when published and may change. Check important information independently and consult a qualified professional when needed. Mentioning an asset, company, or service is not an endorsement.
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