Best Dynamic Asset Allocation Funds of October 2024

Dynamic acid allocation funds or balanced advanced funds Have been one of the more popular mutual funds in recent times. Dynamic asset allocation funds are invested in various instruments, such as debt stocks and arbitrage opportunities. The decision to switch between different instruments is based on in-house parameters or various ratios for equity. This allows the fund managers to invest more in equity when the market is down and diversify the polio when the market is at a premium.

Reasons to invest in Dynamic Asset Allocation Funds

Here are some of the prominent reasons why you should consider investing in a dynamic asset allocation fund.

1. Investing in the fund is a smart way to diversify your entire financial portfolio.
2. The fund allows you to invest in stocks as well as other instruments such as real estate or bonds. This makes it an ideal fund for conservative investors as well as investors looking for some diversification.
3. Unlike a lot of other funds, which invest heavily in equity, dynamic asset allocation fund offers better resilience against any sharp market corrections. The fund being inherently diversified ensures that you do not incur a loss, should you hold on to the fund.
4. The taxation on dynamic asset allocation funds is not as stringent as some of the other funds. Since the fund investments are across different sectors, you can even avail yourself of some exemptions as and when applicable.

Best Dynamic Asset Allocation Funds in October 2024

If you are exploring dynamic asset allocation funds, here are some of the best funds that you can invest in.

1. Edelweiss Balanced Advantage Fund

The fund invests 75.99% of its corpus in the domestic equity market. The breakdown of this is 45.47% in large-cap companies, 12.36 % in mid-cap companies and 4.58% in small-cap companies. The fund also has an 11.21% investment in debt instruments, which includes a 9.02% investment in low-risk securities, as well as 1.39% in government securities.

Edelweiss Balanced Advantage Fund has returned 30.90% CAGR in 1 year, 22.47% in 2 years and 14.33% in 3 years.

Here are the top five investments sector-wise:

• Financials – 14.30%
• Net Receivables – 10.65%
• Consumer Discretionary – 9.55%
• Debt – 9.02%
• Information Technology – 7.34%

Here are the top five investments in companies:

• Net Receivables – 10.65%
• HDFC Bank Ltd. – 5.08%
• ICICI Bank Ltd. – 4.16%
• Infosys Ltd. – 2.67%
• Reliance Industries Ltd. – 2.63%

2. HDFC balanced advantage fund

HDFC’s balanced advantage fund invests 64.59% of its corpus in the domestic equity market. The breakdown of this is 42.66% in large-cap companies, 5.28% in mid-cap companies, and 6% in small-cap companies. Apart from this, the fund also invests 29.22% in debt instruments, of which 13.62% is in low-risk securities and 15.17% is in government securities.

HDFC balanced advantage fund has returned 36.22% CAGR in 1 year, 31.47% in 2 years, and 24.48% in 3 years.

Here are the top five investments sector-wise:

• Government Securities – 15.17%
• Financials – 14.45%
• Non Convertible Debentures – 13.44%
• Industrials – 8.22%
• Finance – Banks – Private Sector – 6.10%

Here are the top five investments in companies:

• HDFC Bank Ltd. – 6.10%
• ICICI Bank Ltd. – 3.58%
• State Bank of India – 3.31%
• Coal India Ltd. – 3.15%
• NTPC Limited – 3.14%

3. Aditya Birla Sun Life Balanced Advantage Fund

The fund has 72.73% of its allocation invested in the domestic equity market. The breakdown of this is 47.07% in large-cap companies, 10.09% in mid-cap companies, and 3.49% in small-cap companies. The fund also invests 20.7% in debt instruments, out of which 10.99% are in low-risk securities, and 7.89% are in government securities.

Aditya Birla Sun Life Balanced Advantage Fund has returned 27.67% CAGR in 1 year, 20.89% in 2 years, and 13.79% in 3 years.

Here are the top five investments sector-wise:

• Financials – 12.79%
• Debt – 8.98%
• Industrials – 7.51%
• Consumer Discretionary – 7.43%
• Information Technology – 7.25%

Here are the top five investments in companies:

• HDFC Bank Ltd. – 4.95%
• Reliance Industries Ltd. – 4.78%
• ICICI Bank Ltd. – 4.23%
• Infosys Ltd. – 3.91%
• TREPS – 2.46%

Conclusion

When properly managed, dynamic asset allocation funds can also provide handsome returns over a period of time. The above are some of the best dynamic acetyl location funds that you can invest in the country right now. HDFC balanced advantage fund has provided one of the highest returns over different time frames, making it one of the most popular choices amongst investors. The fund provides a great avenue to diversify your investments and avoid taking a hit event during market fluctuations.

Ref:

1. https://coin.zerodha.com/mf/fund/INF084M01DJ5/aditya-birla-sun-life-balanced-advantage-fund-direct-growth
2. https://www.moneycontrol.com/mutual-funds/nav/aditya-birla-sun-life-balanced-advantage-fund-direct-plan-growth/MIN389
3. https://groww.in/mutual-funds/hybrid-funds/dynamic-asset-allocation-funds
4. https://www.valueresearchonline.com/funds/selector/category/142/hybrid-dynamic-asset-allocation
5. https://economictimes.indiatimes.com/mf/analysis/best-balanced-advantage-funds-or-dynamic-asset-allocation-funds-to-invest-in-september-2024/articleshow/113411861.cms

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