hybrid Fund

Dynamic Asset Allocation Funds

Automatically shifts between equity and debt based on market valuations.

Avg. Return (5Y)

11.92%

No. of Funds

Risk Level

Moderate

Ideal Horizon

3+ years

Top Dynamic Asset Allocation Funds Sorted by Returns

Scheme

HDFC Balanced Advantage Fund

HDFC MF

Expense: 0.74%

1Y: 12.1%

3Y: 14.5%

5Y: 12.8%

ICICI Prudential Balanced Advantage Fund

ICICI Prudential MF

Expense: 0.82%

1Y: 11.5%

3Y: 13.8%

5Y: 12.2%

Kotak Balanced Advantage Fund

Kotak MF

Expense: 0.58%

1Y: 10.8%

3Y: 13.1%

5Y: 11.6%

* Returns are annualized and based on historical data. Past performance does not guarantee future results. Min. SIP: ₹500.

What is a Dynamic Asset Allocation Fund?

Also known as Balanced Advantage Funds, these funds dynamically adjust their equity-debt split based on market valuations. When markets are expensive, they reduce equity; when markets are cheap, they increase it.

Key Advantages

Automatic market-timing through valuation models
Reduces impact of market crashes
Lower drawdowns compared to pure equity
Ideal for investors who worry about market timing

How It Works

The fund uses quantitative models (P/E, P/B ratios of Nifty) to determine equity allocation. Some use derivatives to manage effective equity exposure while maintaining tax efficiency.