Minuses of balanced advantage fundsThe cautious approach taken by balanced advantage funds during stretched market valuations can adversely impact their performance. Lack of liquidity: Balanced advantage funds charge exit loads of up to 1% on redemption within one year of investment. Hence, short term debt funds offer higher liquidity than balanced advantage funds. Expense ratio: The expense ratio of balanced advantage funds can go up to 2.6%, similar to what equity funds charge. Balanced advantage funds should also not be considered an alternative to short term debt funds.

Source: The Hindu November 17, 2019 17:03 UTC