BAF for beginners!

A beginner can look at Balance Advantage Funds (BAF) to invest. It is less volatile than an equity fund and yet gives money the kicker that equity provides in returns. At the same time, the debt reduces the risk that equity also comes with. Most importantly, it also brings in much needed discipline. Since many of us do not understand the true nature of equity, we fail to compare it with what we do in our regular life. If one sees the category average of balanced advantage funds over the period, it has beaten inflation quite handsomely. Little wonder then that close to Rs.2 lakh crore has already been invested in such funds.