Dynamic asset allocation funds, also referred to as balanced advantage funds, tend to invest in a blend of equity and debt depending on market volatility.
They increase and decrease their allocation to different asset classes based on their outlook of stock markets. As the name suggests, they are dynamic in nature and are flexible to tweak their strategy around the changing market scenario. Investing in these funds gains a lot of significance these days as market is volatile.
Here we give a lowdown on returns posted by these funds in past one year:
Top dynamic asset allocation funds posted a healthy return which ranges between 12 to 26 percent in past one year. The average return given by this category of funds was 12.816 percent, as per Morning Star data on April 6, 2022.
HDFC Balanced Advantaged Fund gave 26.2 percent return in past one year, as per Morning Star data. It was followed by BOI AXA Balanced Advantage Direct Growth Fund which delivered a 19 percent return. Trailing this, Edelweiss Balanced Advantage Fund Direct Plan Growth delivered 16 percent return in past one year.
Returns given by top dynamic asset allocation funds:
| Fund schemes | 1-yr-return (in %) |
| HDFC Balanced Advantage Fund Direct Plan Growth Option | 26.21 |
| BOI AXA Balanced Advantage Direct Growth | 19.03 |
| Edelweiss Balanced Advantage Fund Direct Plan Growth | 16.47 |
| PGIM India Balanced Advantage Fund Direct Growth | 16.32 |
| Baroda BNP Paribas Balanced Advantage Fund Direct Growth | 15.80 |
| Tata Balanced Advantage Fund Direct Growth | 15.20 |
(Source: Morning Star data)
At the same time, PGIM India Balanced Advantage Fund Direct Growth also gave 16 percent return. Baroda BNP Paribas Balanced Advantage Fund Direct Growth posted a return of 15.8 percent- whereas Tata Balanced Advantage Fund posted 15.2 percent return.
ITI Balanced Advantage Fund gave 15.04 percent return. Following this, Edelweiss Balanced Advantage Fund Regular Plan Growth delivered a return of 14.8 percent return.
Other funds that gave over 14 percent of returns in past one year are Baroda BNP Paribas Balanced Advantage Fund Regular Growth, ICICI Prudential Balanced Advantage Fund Direct Plan Growth and PGIM India Balanced Advantage Fund Regular Growth.
Trailing these, Nippon India Balanced Advantage Fund Direct Growth Plan gave 13.9 percent return. And so did Invesco India Dynamic Equity Fund Direct Plan Growth, ICICI Prudential Balanced Advantage Fund Growth, Aditya Birla Sun Life Balanced Advantage Fund Direct Plan Growth Option and Tata Balanced Advantage Fund Regular Growth.
The funds that gave single-digit returns include L&T Balanced Advantage Fund Direct Plan Growth Option which gave 9.2 percent return, Union Balanced Advantage Fund Direct Growth that posted 9.19 percent return and Shriram Balanced Advantage Fund Regular Growth with 8.41 percent return, Morning Star data revealed.
Other funds included Motilal Oswal Dynamic Fund Regular Plan Growth Option that gave 4.7 percent return, DSP Dynamic Asset Allocation Fund Regular Growth with 6.9 percent return and L&T Balanced Advantage Fund Growth with 7.78 percent return.
However, it is important to note that these returns are averaged for the entire year. Ever since the market turned volatile in view of Russia's attack on Ukraine on February 24, and soaring fuel inflation, the returns have turned southward.
In past one quarter, dynamic asset allocation funds gave 0.28 percent return, and in past one month, their return was marginally higher at 4.97 percent, according to Value Research Data on April 6.