Best Dynamic Asset Allocation or Balanced Advantage Funds

Fund Name
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HDFC Balanced Advantage Fund Growth Plan Direct Plan

HDFC Balanced Advantage Fund Growth Plan Direct Plan

Hybrid Dynamic Asset Allocation or Balanced Advantage

₹77,011.15 Cr.

23.76%

4

HDFC Balanced Advantage Fund IDCW Plan Direct Plan Payout

HDFC Balanced Advantage Fund IDCW Plan Direct Plan Payout

Hybrid Dynamic Asset Allocation or Balanced Advantage

₹77,011.15 Cr.

23.11%

4

HDFC Balanced Advantage Fund IDCW Plan Direct Plan Reinvestment

HDFC Balanced Advantage Fund IDCW Plan Direct Plan Reinvestment

Hybrid Dynamic Asset Allocation or Balanced Advantage

₹77,011.15 Cr.

23.11%

4

Bank of India Balanced Advantage Fund Direct Plan Growth

Bank of India Balanced Advantage Fund Direct Plan Growth

Hybrid Dynamic Asset Allocation or Balanced Advantage

₹115.34 Cr.

14.77%

3

Bank of India Balanced Advantage Fund Direct Plan IDCW Payout

Bank of India Balanced Advantage Fund Direct Plan IDCW Payout

Hybrid Dynamic Asset Allocation or Balanced Advantage

₹115.34 Cr.

14.67%

3

Bank of India Balanced Advantage Fund Direct Plan IDCW Reinvestment

Bank of India Balanced Advantage Fund Direct Plan IDCW Reinvestment

Hybrid Dynamic Asset Allocation or Balanced Advantage

₹115.34 Cr.

14.67%

3

Baroda BNP Paribas Balanced Advantage Fund Direct Plan IDCW Payout

Baroda BNP Paribas Balanced Advantage Fund Direct Plan IDCW Payout

Hybrid Dynamic Asset Allocation or Balanced Advantage

₹3,671.27 Cr.

14.61%

3

Baroda BNP Paribas Balanced Advantage Fund Direct Plan IDCW Reinvestment

Baroda BNP Paribas Balanced Advantage Fund Direct Plan IDCW Reinvestment

Hybrid Dynamic Asset Allocation or Balanced Advantage

₹3,671.27 Cr.

14.61%

3

Baroda BNP Paribas Balanced Advantage Fund Direct Plan Growth

Baroda BNP Paribas Balanced Advantage Fund Direct Plan Growth

Hybrid Dynamic Asset Allocation or Balanced Advantage

₹3,671.27 Cr.

14.61%

3

ITI Balanced Advantage Fund Direct Plan IDCW Payout

ITI Balanced Advantage Fund Direct Plan IDCW Payout

Hybrid Dynamic Asset Allocation or Balanced Advantage

₹327.05 Cr.

14.31%

0

ITI Balanced Advantage Fund Direct Plan IDCW Reinvestment

ITI Balanced Advantage Fund Direct Plan IDCW Reinvestment

Hybrid Dynamic Asset Allocation or Balanced Advantage

₹327.05 Cr.

14.31%

0

ITI Balanced Advantage Fund Direct Plan Growth

ITI Balanced Advantage Fund Direct Plan Growth

Hybrid Dynamic Asset Allocation or Balanced Advantage

₹327.05 Cr.

14.31%

0

TATA Balanced Advantage Fund Direct Plan Growth

TATA Balanced Advantage Fund Direct Plan Growth

Hybrid Dynamic Asset Allocation or Balanced Advantage

₹8,516.95 Cr.

14.01%

3.5

TATA Balanced Advantage Fund Direct Plan Reinvestment of IDCW Reinvestment

TATA Balanced Advantage Fund Direct Plan Reinvestment of IDCW Reinvestment

Hybrid Dynamic Asset Allocation or Balanced Advantage

₹8,516.95 Cr.

14.01%

3.5

Edelweiss Balanced Advantage Fund Direct Plan Quarterly IDCW Payout

Edelweiss Balanced Advantage Fund Direct Plan Quarterly IDCW Payout

Hybrid Dynamic Asset Allocation or Balanced Advantage

₹10,349.08 Cr.

13.85%

5

Edelweiss Balanced Advantage Fund Direct Plan Quarterly IDCW Reinvestment

Edelweiss Balanced Advantage Fund Direct Plan Quarterly IDCW Reinvestment

Hybrid Dynamic Asset Allocation or Balanced Advantage

₹10,349.08 Cr.

13.85%

5

Edelweiss Balanced Advantage Fund Direct Plan Growth

Edelweiss Balanced Advantage Fund Direct Plan Growth

Hybrid Dynamic Asset Allocation or Balanced Advantage

₹10,349.08 Cr.

13.85%

5

Edelweiss Balanced Advantage Fund Direct Plan Monthly IDCW Payout

Edelweiss Balanced Advantage Fund Direct Plan Monthly IDCW Payout

Hybrid Dynamic Asset Allocation or Balanced Advantage

₹10,349.08 Cr.

13.85%

5

Edelweiss Balanced Advantage Fund Direct Plan Monthly IDCW Reinvestment

Edelweiss Balanced Advantage Fund Direct Plan Monthly IDCW Reinvestment

Hybrid Dynamic Asset Allocation or Balanced Advantage

₹10,349.08 Cr.

13.85%

5

TATA Balanced Advantage Fund Direct Plan Payout of IDCW Payout

TATA Balanced Advantage Fund Direct Plan Payout of IDCW Payout

Hybrid Dynamic Asset Allocation or Balanced Advantage

₹8,516.95 Cr.

13.82%

3.5

Nippon India Balanced Advantage Fund Direct Plan IDCW Payout

Nippon India Balanced Advantage Fund Direct Plan IDCW Payout

Hybrid Dynamic Asset Allocation or Balanced Advantage

₹7,588.13 Cr.

13.71%

4.5

Nippon India Balanced Advantage Fund Direct Plan IDCW Reinvestment

Nippon India Balanced Advantage Fund Direct Plan IDCW Reinvestment

Hybrid Dynamic Asset Allocation or Balanced Advantage

₹7,588.13 Cr.

13.71%

4.5

Nippon India Balanced Advantage Fund Direct Plan Growth Plan Growth

Nippon India Balanced Advantage Fund Direct Plan Growth Plan Growth

Hybrid Dynamic Asset Allocation or Balanced Advantage

₹7,588.13 Cr.

13.71%

4.5

Invesco India Dynamic Equity Fund Direct Plan Growth

Invesco India Dynamic Equity Fund Direct Plan Growth

Hybrid Dynamic Asset Allocation or Balanced Advantage

₹694.85 Cr.

13.47%

2.5

Invesco India Dynamic Equity Fund Direct Plan IDCW (Payout / Payout)

Invesco India Dynamic Equity Fund Direct Plan IDCW (Payout / Payout)

Hybrid Dynamic Asset Allocation or Balanced Advantage

₹694.85 Cr.

13.45%

2.5

Invesco India Dynamic Equity Fund Direct Plan IDCW (Reinvestment / Reinvestment)

Invesco India Dynamic Equity Fund Direct Plan IDCW (Reinvestment / Reinvestment)

Hybrid Dynamic Asset Allocation or Balanced Advantage

₹694.85 Cr.

13.45%

2.5

Shriram Balanced Advantage Fund Direct Growth

Shriram Balanced Advantage Fund Direct Growth

Hybrid Dynamic Asset Allocation or Balanced Advantage

₹44.78 Cr.

13.26%

2

ICICI Prudential Balanced Advantage Fund Direct Plan Growth

ICICI Prudential Balanced Advantage Fund Direct Plan Growth

Hybrid Dynamic Asset Allocation or Balanced Advantage

₹54,141.75 Cr.

13.22%

5

ICICI Prudential Balanced Advantage Fund Direct Plan Monthly IDCW Reinvestment

ICICI Prudential Balanced Advantage Fund Direct Plan Monthly IDCW Reinvestment

Hybrid Dynamic Asset Allocation or Balanced Advantage

₹54,141.75 Cr.

13.21%

5

ICICI Prudential Balanced Advantage Fund Direct Plan Monthly IDCW Payout

ICICI Prudential Balanced Advantage Fund Direct Plan Monthly IDCW Payout

Hybrid Dynamic Asset Allocation or Balanced Advantage

₹54,141.75 Cr.

13.21%

5

ICICI Prudential Balanced Advantage Fund Direct Plan IDCW Reinvestment

ICICI Prudential Balanced Advantage Fund Direct Plan IDCW Reinvestment

Hybrid Dynamic Asset Allocation or Balanced Advantage

₹54,141.75 Cr.

13.21%

5

ICICI Prudential Balanced Advantage Fund Direct Plan IDCW Payout

ICICI Prudential Balanced Advantage Fund Direct Plan IDCW Payout

Hybrid Dynamic Asset Allocation or Balanced Advantage

₹54,141.75 Cr.

13.21%

5

Shriram Balanced Advantage Fund Direct IDCW Payout

Shriram Balanced Advantage Fund Direct IDCW Payout

Hybrid Dynamic Asset Allocation or Balanced Advantage

₹44.78 Cr.

13.13%

2

Shriram Balanced Advantage Fund Direct IDCW Reinvestment

Shriram Balanced Advantage Fund Direct IDCW Reinvestment

Hybrid Dynamic Asset Allocation or Balanced Advantage

₹44.78 Cr.

13.13%

2

Axis Balanced Advantage Fund Direct Plan IDCW Payout

Axis Balanced Advantage Fund Direct Plan IDCW Payout

Hybrid Dynamic Asset Allocation or Balanced Advantage

₹1,990.45 Cr.

12.84%

2

Axis Balanced Advantage Fund Direct Plan IDCW Reinvestment

Axis Balanced Advantage Fund Direct Plan IDCW Reinvestment

Hybrid Dynamic Asset Allocation or Balanced Advantage

₹1,990.45 Cr.

12.84%

2

Axis Balanced Advantage Fund Direct Plan Growth

Axis Balanced Advantage Fund Direct Plan Growth

Hybrid Dynamic Asset Allocation or Balanced Advantage

₹1,990.45 Cr.

12.83%

2

Aditya Birla Sun Life Balanced Advantage Fund Direct Plan Growth

Aditya Birla Sun Life Balanced Advantage Fund Direct Plan Growth

Hybrid Dynamic Asset Allocation or Balanced Advantage

₹7,012.91 Cr.

12.38%

4.5

Aditya Birla Sun Life Balanced Advantage Fund Direct IDCW Payout

Aditya Birla Sun Life Balanced Advantage Fund Direct IDCW Payout

Hybrid Dynamic Asset Allocation or Balanced Advantage

₹7,012.91 Cr.

12.21%

4.5

Aditya Birla Sun Life Balanced Advantage Fund Direct IDCW Reinvestment

Aditya Birla Sun Life Balanced Advantage Fund Direct IDCW Reinvestment

Hybrid Dynamic Asset Allocation or Balanced Advantage

₹7,012.91 Cr.

12.21%

4.5

Sundaram Balanced Advantage Fund (Formerly Known as Principal Balanced Advantage Fund) Direct Plan Growth

Sundaram Balanced Advantage Fund (Formerly Known as Principal Balanced Advantage Fund) Direct Plan Growth

Hybrid Dynamic Asset Allocation or Balanced Advantage

₹1,523.84 Cr.

12.16%

2.5

Sundaram Balanced Advantage Fund (Formerly Known as Principal Balanced Advantage Fund) Direct Plan Monthly IDCW Payout

Sundaram Balanced Advantage Fund (Formerly Known as Principal Balanced Advantage Fund) Direct Plan Monthly IDCW Payout

Hybrid Dynamic Asset Allocation or Balanced Advantage

₹1,523.84 Cr.

12.14%

2.5

Sundaram Balanced Advantage Fund (Formerly Known as Principal Balanced Advantage Fund) Direct Plan Monthly IDCW Reinvestment

Sundaram Balanced Advantage Fund (Formerly Known as Principal Balanced Advantage Fund) Direct Plan Monthly IDCW Reinvestment

Hybrid Dynamic Asset Allocation or Balanced Advantage

₹1,523.84 Cr.

12.14%

2.5

Kotak Balanced Advantage Fund Direct Plan Payout of IDCW Payout

Kotak Balanced Advantage Fund Direct Plan Payout of IDCW Payout

Hybrid Dynamic Asset Allocation or Balanced Advantage

₹15,622.55 Cr.

11.73%

2.5

Kotak Balanced Advantage Fund Direct Plan Reinvestment of IDCW Reinvestment

Kotak Balanced Advantage Fund Direct Plan Reinvestment of IDCW Reinvestment

Hybrid Dynamic Asset Allocation or Balanced Advantage

₹15,622.55 Cr.

11.73%

2.5

Kotak Balanced Advantage Fund Direct Plan Growth

Kotak Balanced Advantage Fund Direct Plan Growth

Hybrid Dynamic Asset Allocation or Balanced Advantage

₹15,622.55 Cr.

11.73%

2.5

HSBC Balanced Advantage Fund Direct IDCW Reinvestment

HSBC Balanced Advantage Fund Direct IDCW Reinvestment

Hybrid Dynamic Asset Allocation or Balanced Advantage

₹1,398.79 Cr.

11.57%

1.5

HSBC Balanced Advantage Fund Direct IDCW Payout

HSBC Balanced Advantage Fund Direct IDCW Payout

Hybrid Dynamic Asset Allocation or Balanced Advantage

₹1,398.79 Cr.

11.57%

1.5

HSBC Balanced Advantage Fund Direct Growth

HSBC Balanced Advantage Fund Direct Growth

Hybrid Dynamic Asset Allocation or Balanced Advantage

₹1,398.79 Cr.

11.56%

1.5

PGIM India Balanced Advantage Fund Direct Plan Growth

PGIM India Balanced Advantage Fund Direct Plan Growth

Hybrid Dynamic Asset Allocation or Balanced Advantage

₹1,227.68 Cr.

11.51%

0

PGIM India Balanced Advantage Fund Direct Plan Dividend Option Payout

PGIM India Balanced Advantage Fund Direct Plan Dividend Option Payout

Hybrid Dynamic Asset Allocation or Balanced Advantage

₹1,227.68 Cr.

11.49%

0

PGIM India Balanced Advantage Fund Direct Plan Dividend Option Reinvestment

PGIM India Balanced Advantage Fund Direct Plan Dividend Option Reinvestment

Hybrid Dynamic Asset Allocation or Balanced Advantage

₹1,227.68 Cr.

11.49%

0

Bandhan Balanced Advantage Fund Direct Plan IDCW Payout

Bandhan Balanced Advantage Fund Direct Plan IDCW Payout

Hybrid Dynamic Asset Allocation or Balanced Advantage

₹2,250.21 Cr.

11.14%

1.5

Bandhan Balanced Advantage Fund Direct Plan IDCW Reinvestment

Bandhan Balanced Advantage Fund Direct Plan IDCW Reinvestment

Hybrid Dynamic Asset Allocation or Balanced Advantage

₹2,250.21 Cr.

11.14%

1.5

Motilal Oswal Balance Advantage Fund Direct Annual IDCW Payout/Payout Payout

Motilal Oswal Balance Advantage Fund Direct Annual IDCW Payout/Payout Payout

Hybrid Dynamic Asset Allocation or Balanced Advantage

₹1,281.58 Cr.

10.62%

1

Motilal Oswal Balance Advantage Fund Direct Annual IDCW Reinvestment/Reinvestment Reinvestment

Motilal Oswal Balance Advantage Fund Direct Annual IDCW Reinvestment/Reinvestment Reinvestment

Hybrid Dynamic Asset Allocation or Balanced Advantage

₹1,281.58 Cr.

10.62%

1

Motilal Oswal Balance Advantage Fund (MOFDYNAMIC) Direct Plan Growth

Motilal Oswal Balance Advantage Fund (MOFDYNAMIC) Direct Plan Growth

Hybrid Dynamic Asset Allocation or Balanced Advantage

₹1,281.58 Cr.

10.61%

1

Motilal Oswal Balance Advantage Fund Direct Quarterly IDCW Payout/Payout Payout

Motilal Oswal Balance Advantage Fund Direct Quarterly IDCW Payout/Payout Payout

Hybrid Dynamic Asset Allocation or Balanced Advantage

₹1,281.58 Cr.

10.55%

1

Motilal Oswal Balance Advantage Fund Direct Quarterly IDCW Reinvestment/Reinvestment Reinvestment

Motilal Oswal Balance Advantage Fund Direct Quarterly IDCW Reinvestment/Reinvestment Reinvestment

Hybrid Dynamic Asset Allocation or Balanced Advantage

₹1,281.58 Cr.

10.55%

1

Bandhan Balanced Advantage Fund Direct Plan Growth

Bandhan Balanced Advantage Fund Direct Plan Growth

Hybrid Dynamic Asset Allocation or Balanced Advantage

₹2,250.21 Cr.

10.48%

1.5

Union Balanced Advantage Fund Direct Plan Growth

Union Balanced Advantage Fund Direct Plan Growth

Hybrid Dynamic Asset Allocation or Balanced Advantage

₹1,639.64 Cr.

10.45%

4

Union Balanced Advantage Fund Direct Plan IDCW Reinvestment

Union Balanced Advantage Fund Direct Plan IDCW Reinvestment

Hybrid Dynamic Asset Allocation or Balanced Advantage

₹1,639.64 Cr.

10.45%

4

Union Balanced Advantage Fund Direct Plan IDCW Payout

Union Balanced Advantage Fund Direct Plan IDCW Payout

Hybrid Dynamic Asset Allocation or Balanced Advantage

₹1,639.64 Cr.

10.45%

4

DSP Dynamic Asset Allocation Fund Direct Plan Growth

DSP Dynamic Asset Allocation Fund Direct Plan Growth

Hybrid Dynamic Asset Allocation or Balanced Advantage

₹3,185.60 Cr.

9.5%

1

DSP Dynamic Asset Allocation Fund Direct Plan IDCW Monthly Payout

DSP Dynamic Asset Allocation Fund Direct Plan IDCW Monthly Payout

Hybrid Dynamic Asset Allocation or Balanced Advantage

₹3,185.60 Cr.

9.23%

1

DSP Dynamic Asset Allocation Fund Direct Plan IDCW Monthly Reinvestment

DSP Dynamic Asset Allocation Fund Direct Plan IDCW Monthly Reinvestment

Hybrid Dynamic Asset Allocation or Balanced Advantage

₹3,185.60 Cr.

9.23%

1

Mahindra Manulife Balanced Advantage Fund Direct Plan Growth

Mahindra Manulife Balanced Advantage Fund Direct Plan Growth

Hybrid Dynamic Asset Allocation or Balanced Advantage

₹672.04 Cr.

0%

0

SBI Balanced Advantage Fund Direct Plan Growth

SBI Balanced Advantage Fund Direct Plan Growth

Hybrid Dynamic Asset Allocation or Balanced Advantage

₹27,487.94 Cr.

0%

0

LIC MF Balanced Advantage Fund Direct Plan Growth

LIC MF Balanced Advantage Fund Direct Plan Growth

Hybrid Dynamic Asset Allocation or Balanced Advantage

₹925.38 Cr.

0%

0

LIC MF Balanced Advantage Fund Direct Plan IDCW Payout

LIC MF Balanced Advantage Fund Direct Plan IDCW Payout

Hybrid Dynamic Asset Allocation or Balanced Advantage

₹925.38 Cr.

0%

0

Mahindra Manulife Balanced Advantage Fund Direct Plan IDCW Payout

Mahindra Manulife Balanced Advantage Fund Direct Plan IDCW Payout

Hybrid Dynamic Asset Allocation or Balanced Advantage

₹672.04 Cr.

0%

0

SBI Balanced Advantage Fund Direct Plan IDCW Payout

SBI Balanced Advantage Fund Direct Plan IDCW Payout

Hybrid Dynamic Asset Allocation or Balanced Advantage

₹27,487.94 Cr.

0%

0

Mahindra Manulife Balanced Advantage Fund Direct Plan IDCW Reinvestment

Mahindra Manulife Balanced Advantage Fund Direct Plan IDCW Reinvestment

Hybrid Dynamic Asset Allocation or Balanced Advantage

₹672.04 Cr.

0%

0

LIC MF Balanced Advantage Fund Direct Plan IDCW Reinvestment

LIC MF Balanced Advantage Fund Direct Plan IDCW Reinvestment

Hybrid Dynamic Asset Allocation or Balanced Advantage

₹925.38 Cr.

0%

0

SBI Balanced Advantage Fund Direct Plan IDCW Reinvestment

SBI Balanced Advantage Fund Direct Plan IDCW Reinvestment

Hybrid Dynamic Asset Allocation or Balanced Advantage

₹27,487.94 Cr.

0%

0

Whiteoak Capital Balanced Advantage Fund Direct Plan Growth

Whiteoak Capital Balanced Advantage Fund Direct Plan Growth

Hybrid Dynamic Asset Allocation or Balanced Advantage

₹821.70 Cr.

0%

0

NJ Balanced Advantage Fund Direct Plan IDCW Payout Payout

NJ Balanced Advantage Fund Direct Plan IDCW Payout Payout

Hybrid Dynamic Asset Allocation or Balanced Advantage

₹3,935.41 Cr.

0%

0

NJ Balanced Advantage Fund Direct Plan Growth

NJ Balanced Advantage Fund Direct Plan Growth

Hybrid Dynamic Asset Allocation or Balanced Advantage

₹3,935.41 Cr.

0%

0

Mirae Asset Balanced Advantage Fund Direct Plan IDCW Payout

Mirae Asset Balanced Advantage Fund Direct Plan IDCW Payout

Hybrid Dynamic Asset Allocation or Balanced Advantage

₹1,492.67 Cr.

0%

0

Mirae Asset Balanced Advantage Fund Direct Plan Growth

Mirae Asset Balanced Advantage Fund Direct Plan Growth

Hybrid Dynamic Asset Allocation or Balanced Advantage

₹1,492.67 Cr.

0%

0

Mirae Asset Balanced Advantage Fund Direct Plan IDCW Reinvestment

Mirae Asset Balanced Advantage Fund Direct Plan IDCW Reinvestment

Hybrid Dynamic Asset Allocation or Balanced Advantage

₹1,492.67 Cr.

0%

0

Quant Dynamic Asset Allocation Fund Growth Direct Plan

Quant Dynamic Asset Allocation Fund Growth Direct Plan

Hybrid Dynamic Asset Allocation or Balanced Advantage

₹607.46 Cr.

0%

0

Quant Dynamic Asset Allocation Fund IDCW Direct Plan Payout

Quant Dynamic Asset Allocation Fund IDCW Direct Plan Payout

Hybrid Dynamic Asset Allocation or Balanced Advantage

₹607.46 Cr.

0%

0

Quant Dynamic Asset Allocation Fund IDCW Direct Plan Reinvestment

Quant Dynamic Asset Allocation Fund IDCW Direct Plan Reinvestment

Hybrid Dynamic Asset Allocation or Balanced Advantage

₹607.46 Cr.

0%

0

Franklin India Balanced Advantage Fund Growth Direct

Franklin India Balanced Advantage Fund Growth Direct

Hybrid Dynamic Asset Allocation or Balanced Advantage

₹1,621.39 Cr.

0%

0

Franklin India Balanced Advantage Fund IDCW Direct Payout

Franklin India Balanced Advantage Fund IDCW Direct Payout

Hybrid Dynamic Asset Allocation or Balanced Advantage

₹1,621.39 Cr.

0%

0

Franklin India Balanced Advantage Fund IDCW Direct Reinvestment

Franklin India Balanced Advantage Fund IDCW Direct Reinvestment

Hybrid Dynamic Asset Allocation or Balanced Advantage

₹1,621.39 Cr.

0%

0

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.

It allows investors to take advantage of market fluctuations while minimising risk. Dynamic Asset Allocation Funds are funds that automatically adjust their portfolio allocation based on market conditions. These funds invest in a mix of equity and debt securities. They usually adjust their portfolio by investing in equity securities when the market is bullish and in debt securities when the market is bearish.

How Do Dynamic Asset Allocation Funds Work?

Dynamic asset allocation funds offer significant advantages in uncertain market conditions. They grant fund managers enhanced flexibility in portfolio management, making them an excellent choice for adapting to market fluctuations. In extended bear markets, these funds can pivot towards debt-based assets, ensuring a steady stream of returns for investors.

Conversely, during accumulation or uptrend phases in the market, fund managers have the latitude to allocate more resources to equity-related securities, potentially amplifying returns. These funds rely on model-based triggers to dynamically oversee equity and debt allocations, enabling agile responses to market dynamics.

Features of Dynamic Asset Allocation Funds

Dynamic mutual funds have several features that distinguish them from traditional mutual funds. Here are some of the key elements of DAAFs:

  1. Flexible asset allocation: Dynamic Asset Allocation Funds invest in a combination of equity and debt securities, but not at a fixed percentage. The investment managers of DAAFs may use a quantitative approach to determine asset allocation based on variables such as market valuations, interest rates, and economic indicators.
  2. Active management: Unlike traditional mutual funds that follow a fixed asset allocation strategy, Dynamic Asset Allocation Funds are actively managed. The fund managers monitor market conditions and adjust the allocation of assets accordingly.
  3. Risk management: Dynamic Asset Allocation Funds aim to minimise risk by investing in a mix. The fund’s asset composition will change according to the market to minimise risks.
  4. Potential for higher returns: Dynamic Asset Allocation Funds have the potential to provide higher returns than pure equity or debt funds. Investment managers use a mathematical model to determine the optimal mix of equity and debt securities, which can help in generating higher returns.
  5. Suitable for long-term investors: Dynamic Asset Allocation Funds are suitable for long-term investors who want to take advantage of market fluctuations while minimising risk. These funds require a longer investment horizon to deliver returns.

Advantages of Investing in Dynamic Asset Allocation Funds

Dynamic Asset Allocation Funds are designed to deliver optimum returns in any market condition. The benefits offered by Dynamic Asset Allocation Funds are as follows:

  1. Minimises risk: Dynamic Asset Allocation Funds aim to minimise risk by investing in a mix of equity and debt securities. The allocation of assets in these funds is not fixed and varies based on market conditions, which helps to minimise risk.
  2. Provides flexibility: Dynamic Asset Allocation Funds provide flexibility to investors by allowing them to take advantage of market fluctuations. The investment managers of these funds use a quantitative approach to determine asset allocation, which is based on variables such as market valuations, interest rates, and economic indicators.
  3. Offers potential for higher returns: Dynamic Asset Allocation Funds have the potential to provide higher returns than traditional equity or debt funds. The investment managers of these funds use a mathematical model to determine the optimal mix of equity and debt securities, which can help to generate higher returns.

Risk Involved in Dynamic Asset Allocation Funds

While Dynamic Asset Allocation Funds can potentially provide higher returns than traditional fixed allocation funds, there are several risks associated with these types of funds that investors should be aware of:

  1. Market risk: Dynamic Asset Allocation Funds are subject to market risk, which means that their value can fluctuate based on the performance of the underlying securities in the portfolio.
  2. Asset allocation risk: Dynamic Asset Allocation Funds rely heavily on asset allocation strategies to generate returns. If the manager’s asset allocation decisions are incorrect, the fund’s performance may suffer.
  3. Performance chasing risk: Some Dynamic Asset Allocation Funds may be more susceptible to performance chasing, where managers may be tempted to chase returns by investing in assets that have performed well recently. This can result in suboptimal asset allocation decisions and lower returns.
  4. Cost risk: Dynamic Asset Allocation Funds may have higher fees than traditional funds due to the active management and research involved in making investment decisions.

Investors should carefully consider these risks before investing in Dynamic Asset Allocation Funds and should consult with a financial advisor or rely on a trusted broker like Angel One to carefully manage their funds.

Factors To Consider Before Investing in Dynamic Asset Allocation Funds

  1. Investment Goals: Determine your financial objectives, such as long-term wealth accumulation or capital preservation, as this will guide your choice of dynamic asset allocation funds.
  2. Risk Tolerance: Assess your risk tolerance to ensure the fund’s volatility matches your comfort level, as these funds can vary in risk exposure.
  3. Fund Manager Expertise: Research the fund manager’s track record and expertise in tactical asset allocation, as their decisions will significantly impact your returns.
  4. Costs and Fees: Evaluate the fund’s expense ratio and any additional fees, as high costs can erode your returns over time.
  5. Historical Performance: Review the fund’s historical performance during different market conditions to gauge its ability to adapt and generate consistent returns.

Who Should Invest in Dynamic Asset Allocation Funds?

These funds adjust their exposure to each asset class based on market conditions and the performance of certain securities. Therefore, investors who want a portfolio that can adjust to changing market conditions and give optimal returns may consider investing in Dynamic Asset allocation Funds. Here are some types of investors who may consider investing in Dynamic Asset Allocation Funds:

  1. Risk-averse investors: Dynamic Asset Allocation Funds are suitable for investors who are risk-averse and want to invest in a diversified portfolio with a mix of low-risk and high-risk assets.
  2. Investors with a moderate risk profile: Investors with a moderate risk profile who want to earn higher returns than what traditional fixed-income investments offer, while managing risk, may consider investing in Dynamic Asset Allocation Funds.
  3. Long-term investors: Dynamic Asset Allocation Funds can suit investors with a long-term investment horizon who want to earn higher returns by investing in a diversified portfolio of assets across different asset classes.
  4. Investors who want to be flexible in terms of market opportunities: These funds are suitable for investors who want to take advantage of market opportunities and invest in different asset classes based on the prevailing market conditions.

However, it is important to note that investors should carefully consider their risk tolerance before investing.

Taxability of Dynamic Asset Allocation Funds

In terms of taxability, Dynamic Asset Allocation funds are treated similarly to other equity-oriented mutual funds.

Dynamic mutual funds are categorised as equity funds if the stock holdings are at least 65%. They are subject to a long-term capital gains tax of 10% (plus applicable surcharge and cess) if held for more than 1 year. Moreover, long term capital gains of less than ₹1 lakh will not be taxed. Short-term capital gains (investments held for less than 1 year) will be taxed at 15% (plus applicable surcharge and cess).

When an investor earns dividends on their DAAF investments, the dividends are included in their taxable income and subject to taxation based on their income tax bracket. In addition, if the dividend amount exceeds ₹5,000 in a financial year, a 10% Tax Deducted at Source (TDS) is applied to the excess amount.

It is important to note that the tax rules are subject to change, and investors should consult with a tax advisor for specific guidance on tax implications related to their investments.

How to Invest in Dynamic Asset Allocation Funds?

Investing in Dynamic Asset Allocation Funds can be a straightforward process using your Angel One account. Here’s a guide on how to do it:

Step 1: Access Your Angel One Account. Start by logging into your Angel One account using your registered mobile number. Validate the OTP received and enter your MPIN.

Note: If you don’t already have a Demat account with Angel One, you can easily open one by completing the KYC procedure and providing the required documents.

Step 2: Choose the right fund now; it’s time to pick the most suitable mutual fund based on your financial goals and risk tolerance. You can find various funds in the mutual fund section on the Angel One app. Here are some considerations during this stage:

  • Search for the specific fund you want to invest in or explore funds recommended by Angel One across different categories.
  • Analyse the fund’s historical performance, tax implications, sectors it invests in, and the stocks it holds.
  • Calculate potential returns using the provided calculator.
  • Assess the fund’s risk level and compare it with your own risk tolerance.
  • Check the fund’s ratings from well-known rating agencies, which typically range from 1 to 5.
  • Consider the fund’s expense ratio to understand the cost associated with your investment.

Step 3: Initiate Your Investment Once you’ve finalised the fund(s) you wish to invest in, access your Angel One account, navigate to the Mutual Funds section, and locate the chosen fund. Since this could be a long-term investment, it’s essential to be cautious during this step. Here’s what to do:

  • Decide whether you want to invest a lump sum amount or set up a monthly SIP (Systematic Investment Plan).
  • Enter the investment amount and select your preferred payment method. UPI is the recommended mode, but you can also opt for net banking.
  • If you’re choosing the SIP route, you can set up a mandate for hassle-free future contributions.

Top 5 Dynamic Asset Allocation Funds to Invest in

Fund Name AUM

(in ₹ crore)

Minimum Investment (in ₹) 3-yr Returns (%) 5-yr Return (%)
HDFC Balanced Advantage Fund 52,079.29 100 30.61 13.10
Edelweiss Balanced Advantage Fund Growth 8,756.15 5,000 19.17 12.02
ICICI Prudential Balanced Advantage Fund 44,699.79 500 20.28 10.29
Nippon India Balanced Advantage Fund 6,711.52 100 18.11 10.04
Aditya Birla Sun Life Balanced Advantage Fund 6,357.36 100 19.16 9.71

The above-mentioned top funds are for informational purposes only and are not recommendations. The funds are based on a 5-year return, which is subject to change frequently. Check out real-time data on Angel One.

HDFC Balanced Advantage Fund

The HDFC Balanced Advantage Fund Direct Plan-Growth is a mutual fund scheme with a hybrid investment strategy offered by HDFC Mutual Fund. As of the latest available information, the fund has an expense ratio of 0.87% and a declared net asset value (NAV) of ₹359.118.

Edelweiss Balanced Advantage Fund Growth

The Edelweiss Balanced Advantage Fund Direct-Growth is a hybrid mutual fund offered by Edelweiss Mutual Fund. As of now, the fund has an expense ratio of 0.52% and its most recent net asset value (NAV) is declared at ₹41.340.

ICICI Prudential Balanced Advantage Fund

ICICI Prudential Balanced Advantage Direct-Growth is a mutual fund scheme that combines both equity and debt investments. The scheme currently has an expense ratio of 0.96%, and the most recent net asset value (NAV) announced is ₹59.470.

Nippon India Balanced Advantage Fund

Nippon India Mutual Fund manages the Hybrid mutual fund scheme known as Nippon India Balanced Advantage Fund Direct-Growth. The scheme has an expense ratio of 0.74% and has recently declared a net asset value (NAV) of ₹142.104.

Aditya Birla Sun Life Balanced Advantage Fund

Aditya Birla Sun Life Mutual Fund offers a Hybrid mutual fund scheme called Aditya Birla Sun Life Balanced Advantage Fund Direct-Growth. It has an expense ratio of 0.42% and the latest declared NAV is ₹85.510.

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Dynamic Asset Allocation or Balanced Advantage Funds FAQs

What are Dynamic Asset Allocation Funds in India?

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.

How do Dynamic Asset Allocation Funds work?

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.

What is the ideal investment horizon for Dynamic Asset Allocation Funds?

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.

What are the advantages of investing in Dynamic Asset Allocation Funds?

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.

What are the risks of investing in Dynamic Asset Allocation Funds?

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.

What are some popular Dynamic Asset Allocation Funds in India?

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.