Mutual Fund schemes to consider in 2023 amid rising market volatility
The balance advantage funds (BAF) adjusts exposure between equities and debt depending upon their respective valuations. The US benchmark indices including the S&P 500 and the Nasdaq Composite indices are down 22% and 33% respectively from their p...
Mutual fund (MF) advisors and distributors recommend retail investors to increase exposure to flexi-cap, balance advantage and US-centric schemes amid the expectations of a heightened market volatility in 2023.
In 2023, global markets face challenges such as looming recession, high inflation, unresolved dispute between Russia and Ukraine and uncertainty over the global repercussions of rising Coronavirus cases in China.
“To deal with macro-economic issues, it makes sense to invest in a combination of balance advantage and US-centric schemes. This will minimise volatility in returns,” said Rupesh Bhansali, head of mutual funds, GEPL Capital.
The balance advantage funds (BAF) adjusts exposure between equities and debt depending upon their respective valuations. The US benchmark indices including the S&P 500 and the Nasdaq Composite indices are down 22% and 33% respectively from their peaks. MF advisors believe that the sharp fall makes these indices attractive in 2023. “By increasing exposure to flexi-cap schemes investors can gain from a potential upside in markets,” said Harshvardhan Roongta, CFP, Roongta Securities. He added that in a flexi-cap scheme a fund manager adjusts to a company of any size, which is advantageous in generating relatively better returns in times of high volatility.
