Here's why you should invest in balanced advantage funds in times of uncertainty

"When the markets are uncertain in their direction, whether they go up or down, balanced advantage funds adapt to market conditions. They are an excellent choice for investors seeking to mitigate risk while actively participating in the equity markets," Avasthi told CNBC-TV18.

Sahil Kapoor, Senior Executive Vice President at 360 ONE Wealth, echoed Avasthi's sentiments.

He emphasised on the suitability of balanced advantage funds in choppy markets and periods of elevated valuation levels.

Kapoor highlighted two advantages of these funds.

Firstly, he mentioned their disciplined approach to investing, rebalancing equity and debt allocations based on metrics such as valuation, momentum, and sentiment.

"This disciplined strategy ensures a well-managed investment portfolio," he said.

Secondly, Kapoor pointed out the tax benefits associated with balanced advantage funds, noting that all portfolio churn within these funds is tax-free for investors.

This adds another layer of appeal to these funds, making them a tax-efficient choice for savvy investors.