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Dynamic Asset Allocation or Balanced Advantage Funds

Dynamic Asset Allocation Funds adjust their portfolio mix of stocks, bonds, and other assets in response to changing market conditions. These funds...

Dynamic Asset Allocation Funds adjust their portfolio mix of stocks, bonds, and other assets in response to changing market conditions. These funds aim to optimise returns and minimise risks by actively reallocating assets, offering flexibility for investors seeking a balanced and adaptive strategy.

Best Dynamic Asset Allocation or Balanced Advantage Funds

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About Dynamic Asset Allocation Mutual Funds

Dynamic Asset Allocation Funds (DAAFs) are a new concept in the Indian mutual fund industry. The investment objective of DAAFs is to provide investors with long-term capital appreciation while minimising the risk of capital loss. These funds have gained popularity in recent years due to their unique investment strategy.

Dynamic Asset Allocation or Balanced Advantage Funds FAQs

Dynamic Asset Allocation Funds, also known as Balanced Advantage Funds, are mutual funds that invest in a mix of equity and debt instruments. The fund managers dynamically shift the allocation between equity and debt based on market conditions and other factors.
Dynamic mutual funds consider factors such as market valuation, interest rates, economic indicators, and volatility to make changes in their asset allocation. The goal is to minimise risk while providing reasonable returns.
Dynamic Asset Allocation Funds are suitable for investors with a moderate risk profile and a medium to long-term investment horizon of at least 3 to 5 years.
The advantages of investing in Dynamic Asset Allocation Funds include diversification, professional management, and the ability to adjust asset allocation based on market conditions. These funds also provide exposure to both equity and debt, which can help reduce risk while generating reasonable returns.
The risks include market risk, interest rate risk, and credit risk. These funds are subject to market fluctuations and may not perform as expected in certain market conditions. The debt portion of the portfolio may also be subject to credit risk if the issuer defaults on the debt.
Some popular Dynamic Asset Allocation Funds in India include ICICI Prudential Balanced Advantage Fund, HDFC Balanced Advantage Fund, and Aditya Birla Sun Life Balanced Advantage Fund. However, past performance is not a guarantee of future returns, and investors should conduct their own research before investing.
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