Edelweiss Balanced Advantage Fund

Diversified

Hybrid

India Multi Asset

Others

Aggressive growth Investor Profile

Investor Profile

4–7 yearsInvestment Horizon

HNI, UHNI, Retail Investor, Mass AffluentTarget Segments

SEBI registered equity mutual fund suitable for all investor categoriesRegulatory Fit

Edelweiss Balanced Advantage Fund Growth mixes stocks and bonds for balanced growth and stability.

What This Strategy Does

Edelweiss Balanced Adv Gr is an equity flexi-cap fund which captures India's multi-trillion rupee consumption and financialization opportunity through dynamic asset allocation, deploying capital across financials, industrials, and consumer sectors to achieve broad-based earnings growth.

CW Expert Research Notes

Resilient Downside Protection

The fund has demonstrated consistent downside protection across market cycles, outperforming its benchmark in 6 out of the past 12 years.

Differentiated Sector Positioning

The fund's sector positioning deviates from peers, with overweight exposures to financials and consumer cyclicals, reflecting conviction in domestic consumption trends.

Earnings Revisions Catalyst

The fund's valuation appears fair relative to history, with potential upside from positive earnings revisions driven by an anticipated capex cycle.

Performance and Risk Analysis

Historical returns, volatility patterns, and how this fund has performed relative to its benchmark.

Fund Performance

2.3% AnnuallyAlpha

+10.5% vs +9.9% benchmarkSince Inception

+9.5% vs +6.3% benchmark3Y Annualized

+8.4% vs +6.5% benchmark5Y Annualized

Edelweiss Balanced Advantage Fund

Benchmark Index

Benchmark Performance Comparison

Edelweiss Balanced Advantage Fund

NIFTY 50 + FD Returns

Risk Profile

Standard Deviation10.2%

Maximum Drawdown-10.9% | Oct 2024

Sharpe Ratio-0.21

Beta1.06

Upside Capture112%

Detailed Risks

Market Risk

Potential recession in India driven by slowing global growth could undermine fund's equity exposure; mitigated by dynamic asset allocation.

Liquidity Risk

Elevated mid-cap allocation could face liquidity stress during volatility spikes, impacting rebalancing; mitigated by large-cap buffer.

Concentration Risk

Concentrated exposure to Indian financials facing asset quality risks; diversification across sectors limits downside impact.

Specific Strategy Risk

Regulatory tightening on Indian mutual fund fees could pressure revenue; rigorous monitoring of policy landscape mitigates surprises.

Strategy Details

A closer look at the investment thesis, portfolio construction, and current holdings.

Core Investment Theme

Delivers dynamic asset allocation across equity and debt markets, aiming to capture upside while managing downside risk. By actively rotating between asset classes, this approach seeks to generate consistent returns with lower volatility across market cycles.

Broader Market View

Market Outlook

Equity markets appear to be entering a mid-cycle phase, with consumption and earnings recovery supporting an attractive entry point. Macro tailwinds such as reviving capex and credit growth align with the fund's tilt towards consumer, financial services, and technology sectors, though risks like margin pressures warrant monitoring.

Why This Strategy is Attractive Now

The strategy seems well-positioned, with exposure to market leaders across consumer cyclicals/defensives, financials, and technology. Its balanced profile of around 70 holdings could offer risk-adjusted participation in the normalization theme. A moderate beta and flexibility to rotate could further enhance its appeal over generic benchmarks.

Investment Style & Process

Investment Style

The portfolio exhibits characteristics of a Quality Growth strategy, emphasizing companies with durable competitive advantages, consistent earnings growth, and reasonable valuations relative to their long-term potential.

Why it Makes Sense

In the current market environment characterized by economic uncertainty and elevated volatility, a Quality Growth approach focused on companies with resilient business models, pricing power, and strong balance sheets can provide a degree of defensiveness while participating in secular growth opportunities.

High-Level Investment Process

Sourcing: The strategy appears to source investment ideas from a broad universe of companies across market capitalizations, with a preference for those demonstrating sustainable competitive advantages, strong profitability, and healthy balance sheets. Selection: The selection process suggests an emphasis on companies with durable growth drivers, attractive returns on invested capital, and reasonable valuations relative to their long-term earnings potential. Construction: Portfolio construction appears to balance sector diversification with a focus on quality attributes, resulting in a concentrated portfolio of high-conviction holdings aligned with the strategy's investment philosophy.

Portfolio Holdings Overview

SectoralAllocation

Utilities2.08%

Capital Goods17.55%

Energy & Infra7.48%

Technology8.5%

Consumers21.19%

Financial Services30.14%

Services13.06%

Geographic Allocation

Domestic100%

Top Stock Holdings

CompanySectorAllocation

Clearing Corporation Of India Ltd.Utilities6.20%

ICICI Bank LtdFinancial Services4.22%

Reliance Industries LtdEnergy & Infra4.21%

HDFC Bank LtdFinancial Services3.32%

Larsen & Toubro LtdCapital Goods3.23%

Bharti Airtel LtdServices2.93%

State Bank of IndiaFinancial Services2.59%

TVS Motor Co LtdConsumers2.35%

Infosys LtdTechnology2.30%

Bajaj Finance LtdFinancial Services1.48%

Fund House Management

The asset management company’s track record, AUM scale, and fund manager credentials.

Fund Manager Track Record

Bharat Lahoti

Mr. Bharat Lahoti has experience of 19 years. Manages 163 funds at Edelweiss Asset Management Limited with an AUM of approximately ₹28,490 Cr Holds a MMS degree.

77 years

Combined Team Experience

₹ 1,24,449 Cr

Assets Under Management

Rahul Dedhia

Co-Portfolio Manager

Mr. Rahul Dedhia has experience of 17 years. Manages 130 funds at Edelweiss Asset Management Limited with an AUM of approximately ₹36,540 Cr Holds a M.B.A. degree.

Kedar Karnik

Co-Portfolio Manager

Mr. Kedar Karnik has experience of 21 years. Manages 112 funds at Edelweiss Asset Management Limited with an AUM of approximately ₹17,930 Cr Holds a B.E. degree.

Bhavesh Jain

Co-Portfolio Manager

Mr. Bhavesh Jain has experience of 18 years. Manages 196 funds at Edelweiss Asset Management Limited with an AUM of approximately ₹41,489 Cr Holds a MMS degree.

CW Expert Take

Edelweiss brings capital markets expertise to fund management. Their investment teams leverage deep sectoral knowledge from the parent group's domain experience. The fund house combines fundamental research with market structure understanding, useful across equity positioning and credit cycle navigation.

Firm Overview

Total AUM₹1,80,658.3 Cr

Investment Philosophy & Approach

Disciplined Approach

Edelweiss follows a disciplined investment approach focused on rigorous research.

Risk Management

Risk management is embedded in the investment process and culture.

Long-Term Perspective

Edelweiss maintains a long-term perspective in portfolio construction decisions.

Operational & Regulatory Details

What it costs to invest, transaction mechanics, and regulatory disclosures you should know.

Costs and Fees

Total Expense Ratio (TER)2.08%

Exit Load1

Regulatory & Tax Information

INF754K01285

ISIN

DailyDealing Frequency

CRISIL Hybrid 50+50 Moderate TR INRBenchmark

LTCG | >1Year 12.5%% on gain above 1.25 Lakh

STCG | <1Year 20%%

Tax Implications (India)