When you have a holding period that is less than 3 years, your options are limited. Because this short period gives very little room for risk, pure equity is out of the question. But in debt funds, though returns may be reasonable, taxation for a less than 3-year period cuts into return. Equity savings funds fit this gap.
The balanced advantage funds /dynamic asset allocation funds (BA/DAA) category was created after SEBI’s new categorisation rules. According to the rules these funds need to