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.
Fund Name
|
AUM
|
3Y Returns
|
Ratings
|
|
---|---|---|---|---|
HDFC Balanced Advantage Fund Hybrid Dynamic Asset Allocation or Balanced Advantage |
₹94,824.34 Cr. |
21.46% |
4 |
|
HDFC Balanced Advantage Fund IDCW Plan Direct Plan Reinvestment Hybrid Dynamic Asset Allocation or Balanced Advantage |
₹94,824.34 Cr. |
20.9% |
4 |
|
HDFC Balanced Advantage Fund IDCW Plan Direct Plan Reinvestment Hybrid Dynamic Asset Allocation or Balanced Advantage |
₹94,824.34 Cr. |
20.9% |
4 |
|
Axis Balanced Advantage Fund Hybrid Dynamic Asset Allocation or Balanced Advantage |
₹2,807.81 Cr. |
16.19% |
2 |
|
Axis Balanced Advantage Fund Direct Plan IDCW Reinvestment Hybrid Dynamic Asset Allocation or Balanced Advantage |
₹2,807.81 Cr. |
16.17% |
2 |
|
Axis Balanced Advantage Fund Direct Plan IDCW Reinvestment Hybrid Dynamic Asset Allocation or Balanced Advantage |
₹2,807.81 Cr. |
16.17% |
2 |
|
Baroda BNP Paribas Balanced Advantage Fund Hybrid Dynamic Asset Allocation or Balanced Advantage |
₹4,073.23 Cr. |
15.77% |
3 |
|
Baroda BNP Paribas Balanced Advantage Fund Direct Plan IDCW Reinvestment Hybrid Dynamic Asset Allocation or Balanced Advantage |
₹4,073.23 Cr. |
15.77% |
3 |
|
Baroda BNP Paribas Balanced Advantage Fund Direct Plan IDCW Reinvestment Hybrid Dynamic Asset Allocation or Balanced Advantage |
₹4,073.23 Cr. |
15.77% |
3 |
|
Invesco India Balanced Advantage Fund Hybrid Dynamic Asset Allocation or Balanced Advantage |
₹942.73 Cr. |
15.56% |
2.5 |
Dynamic Asset Allocation Mutual Funds, also known as Balanced Advantage Funds, are a category of hybrid mutual funds that aim to balance the risk and return by dynamically shifting between equity and debt asset classes. These funds do not follow a fixed allocation strategy; instead, the proportion of investment in equity and debt changes based on market valuations and outlook.
The primary objective of these funds is to minimize risk during market downturns and maximize gains when markets are favorable. This makes them suitable for investors who seek exposure to equities with a cushion of debt instruments to help manage volatility.
Dynamic Asset Allocation Funds use various financial models or algorithms to decide the optimal mix of equity and debt. These models consider several indicators like the Price-to-Earnings (P/E) ratio, Price-to-Book (P/B) ratio, market momentum, and other economic variables. Based on these inputs, the fund manager reallocates the portfolio between equity and debt instruments.
For example, if equity markets are considered overvalued, the fund might shift a larger portion of assets to debt. Conversely, if markets appear undervalued, the fund might increase its equity exposure to capture potential growth. This proactive approach eliminates the need for the investor to time the market and helps mitigate downside risks.
These funds are suitable for investors looking for moderate exposure to equity but with a built-in mechanism to manage market risk. First-time investors who are not comfortable with high equity exposure and seasoned investors looking for a balanced approach may both benefit from such funds.
Dynamic Asset Allocation Funds are ideal for medium to long-term financial goals. They are particularly useful in uncertain market environments as they can quickly adapt to volatility and changing economic conditions.
Dynamic Asset Allocation Mutual Funds offer a smart investment solution that adapts to market conditions. With a balanced blend of equity and debt based on data-driven strategies, they help investors optimize returns while managing risk. For those who prefer a hands-off approach but want professional risk-managed exposure to the markets, these funds are an excellent choice.
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