“Given that exposure, having an expectation of like 8%, 9%, 10% is very reasonable, with much lower risk than equities,” Swaminathan said. He added that investors should plan to stay invested for 3 to 5 years to get the full benefit of the strategy.
A balanced advantage fund shifts money between stocks and bonds depending on market conditions, aiming to capture gains in rising markets while limiting losses when markets fall. JioBlackRock’s fund is a New Fund Offer (NFO) — a fund’s initial launch period, when it first opens to investors — that started on September 11 and closes on September 25. It will hold 65% to 90% of its money in stocks and 10% to 35% in debt and money market instruments.
The category has grown fast this year. The number of balanced advantage schemes rose 80% in 2026, and assets under management climbed 196% to ₹2.77 lakh crore. Average equity allocation across the category has climbed steadily since 2021 and stood at 69.69% in 2026 so far, with debt at 20.76% and other assets between 8.9% and 9.5%.
Swaminathan said the fund’s asset-allocation decisions rely on data rather than manager judgment alone. His team tracks stock valuations, domestic growth and inflation trends, and global market moves to decide when to shift money between equity and debt. “So, our actual fund managers can rebalance the fund every week,” he said, adding that the pace can pick up during sudden market swings.
On downside protection, Swaminathan cautioned against expecting full safety from market drops. “I think firstly, we have to be very honest, and there’s no perfect hedge,” he said. The debt portion, which can range from roughly 25% to 35% of the fund, provides some cushion during equity declines and continues to generate income when markets are flat.
He said investors should judge these funds on more than just returns. Volatility of past returns, performance during specific market downturns, and consistency across multiple market cycles all matter when comparing balanced advantage funds against each other.
The debt portion is not risk-free either, Swaminathan said. It carries interest rate risk, where bond prices fall as rates rise, and credit risk, the chance a borrower fails to repay. JioBlackRock‘s fund sticks to AAA-rated debt, the highest credit rating, to limit credit risk while still taking on interest rate risk across different bond durations.Swaminathan positioned the fund as a core holding rather than a smaller, satellite position in an investor’s portfolio, aimed at people who do not want to manage their own equity-debt split. He said both SIP (Systematic Investment Plan, where a fixed amount is invested regularly) and lump-sum investing work for this fund, depending on an investor’s cash flow.
He pointed to a pattern in SIP data: many investors who cancel their SIPs do so within the first two years, often after a market drop of around 5%. A fund that softens volatility, he said, can help new investors stay invested through downturns rather than exiting at the worst time.
Asked about two years of largely flat equity markets, Swaminathan pointed to the events behind them, including a valuation correction, tariff disputes, questions over India’s position in AI, foreign investor outflows, and geopolitical conflict. “Patience is actually your best friend because no matter how hard you try, you won’t always time the market, but if you’re patient, in the long run, you will do well,” he said.
For the full interview, watch the accompanying video
Catch all the latest updates from the stock market here