Explained: What is the difference between balanced advantage funds and aggressive hybrid funds?

Balanced Advantage Funds (BAFs) and Aggressive Hybrid Funds (AHFs) help diversify portfolios. BAFs dynamically allocate based on market conditions; AHFs invest up to 75% in equity and leverage arbitrage gains. JM Aggressive Hybrid Fund had a 54.21% return in a year; HDFC Balanced Advantage Fund, 40.87%. BAFs suit risk-tolerant investors; AHFs, conservative ones seeking moderate risk management.