Oaktree Financial Planning

Balanced advantage funds are a type of hybrid fund that invests in both, equities and debt instruments. There is no set fixed threshold for exposure to a particular asset class. These funds can also modify their asset allocation as per the market conditions. When the equity market is trading at an all-time high, fund managers may increase the exposure to equities, while reducing it in falling stock markets. Unlike other funds, Balanced Advantage funds not only offer a mix of growth and fixed-income instruments but can also switch between asset classes dynamically. Balanced Advantage Funds asset allocation is determined by the dynamic asset allocation methodology. How do they work? Balanced advantage funds have a unique rebalance strategy where they can drastically reduce or increase the asset allocation towards equities or debt. Additionally, if the fund manager anticipates a rise in valuations and key indices, they might increase their equity exposure. But when they anticipate a m...

It is the time of the year when you will have a salary increment and annual bonus as well. You must have already planned where to utilize the bonus. Wait and read and ponder on below following financial planning steps as well. These steps will help you to prioritize where you can use the bonus most effectively. We all have gone through the pandemic and you must have noticed various news of layoffs at corporates. Keeping that in mind we want you to think and plan your finances. Create an Emergency Fund: The financial planning suggests having at least 6-12 months of expenses as an emergency fund. So utilize your salary increment and bonus this year to create the emergency fund. This is why experts recommend that everyone should maintain an emergency fund that can be easily accessed at short notice. If you wonder what is the ideal amount to be kept, the thumb rule is to save enough to cover 3-6 months of expenses which should also include loan EMIs, insurance premiums, and other manda...