BAFs Didn’t Time the Market, They Adjusted Through Its Phases

Thefynprint30 Mar, 2026Finance

Balanced Advantage Funds (BAFs) are often expected to cut risk before markets fall and add it back at the right time. But a closer look at how these funds adjusted net equity exposure across recent market phases suggests they operate differently. Rather than trying to predict turning points, BAFs appear to gradually rebalance exposure as markets move through cycles, trimming equity in rallies and adding it back during corrections.