New Delhi, July 20 -- Balanced advantage funds, also known as dynamic asset allocation funds, are designed to dynamically adjust their allocation between equity and debt based on market conditions.

Under the SEBI categorisation rules, these hybrid funds can invest between 0% and 100% in equity and equity-related instruments, and 0% to 100% in debt instruments. However, the flexibility afforded by the category also allows fund managers to adopt distinct asset allocation strategies.

A comparison of the HDFC Balanced Advantage Fund and the Parag Parikh Dynamic Asset Allocation Fund reveals how funds within the same SEBI category can adopt very different strategies.

According to Value Research data as of 30 June, HDFC Balanced Advantage Fu...