Here is the list of Top 10 Dynamic Asset Allocation Funds in India. In this Article, We will do in-depth analysis of Best Dynamic Asset Allocation Funds of 2024. We will review the ranking of these funds & then we will dig into details of each & every funds performance in last 6 months, 1 year & 3 year.
What are Dynamic Asset Allocation Funds?
Dynamic asset allocation funds or DAA Funds are used in the form of investment products for mutual funds, index funds, credit derivatives, and other structured investment products so as to achieve exposure to various investment opportunities and have a provision of 100% principal protection.
DAA funds include Constant Proportion Portfolio Investment (CPPI) which ensures a guarantee which is similar to zero-coupon bond and an underlying investment. There is a dynamic shift of assets between these two components and they depend on the performance shown by underlying investment.
Dynamic Asset Allocation Funds: Advantages & Limitations
The aim of DAA is to respond to current risks and take advantage displayed by recent trends to achieve returns in a significant manner. The DAA funds are successful only on the portfolio manager who take good investment decision at the correct time.
There are various advantages associated with DAA such as:
- Enhanced Performance: These funds enhance the performance of the investors who are seeking the highest exposure to momentum and seek high returns as per the trends. They also help in minimizing losses by reducing asset classes.
- Diversification: These funds help in managing the risks effectively by exposing the investors to multiple asset classes. Even if a bad decision is taken by the management, these funds provide a significant backup.
However, there are also some limitations associated with DAA funds. These are:
- High Transaction Cost: DAA are involved in frequently selling and buying of assets which result in an increase in transaction cost which slashes the return made by the investors.
- Active Management: In order to adjust the portfolio arrangement in an active manner so as to meet the changing market scenarios, it takes up the time and resources of the investors and thus bring hindrance to their success.
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Top 10 Dynamic Asset Allocation Funds in India
Lets have a ranking review of these Top 10 DAA Funds in India:
| Rank | Name of the Fund | 1st Yr. Return | 3rd Yr. Return |
| 1 | Aditya Birla SL Balanced Advantage Direct-G | 2.95% | 12.79% |
| 2 | HDFC Balanced Advantage Direct-G | -1.69% | 11.85% |
| 3 | HSBC Dynamic Asset Allocation Direct-G | 3.75% | 10.89% |
| 4 | ICICI Prudential Balanced Advantage Direct-Growth | 3.92% | 10.60% |
| 5 | Reliance Balanced Advantage Direct-G | 3.21% | 10.82% |
| 6 | SBI Dynamic Asset Allocation Direct-G | 10.79% | 10.77% |
| 7 | Invesco India Dynamic Equity Direct-G | -2.18% | 10.43% |
| 8 | DSP Dynamic Asset Allocation Fund Direct-Growth | 4.25% | 8.50% |
| 9 | Franklin India Dynamic PE Ratio FoF Direct-G | 5.31% | 9.87% |
| 10 | L&T Dynamic Equity Direct-G | 5.16% | 7.17% |
Details of Best Dynamic Asset Allocation Funds of 2024
Lets have a detailed review of these 10 Best DAA Funds of 2024:
Aditya Birla SL Balanced Advantage Direct Fund – G
The objective of such kind of scheme is to enhance long-term capital growth and high distribution of income with low volatility. It is done by investing in a balanced portfolio with high investment in equity and it is related investments.
This is an open-ended fund based on the growth investment plan. It was launched on 1st of January 2013 and has Benchmark of CRISIL Balance Fund. It has an asset size of Rs.272 crore as of 30th September 2018 with a minimum investment of Rs.5000.
The return for this liquid fund is:
| Period | Return (%) |
| 6 month | 3.1 |
| 1 year | 1.2 |
| 3 years | 11.1 |
HDFC Balanced Advantage Direct Fund – G
These funds provide long-term capital income from a dynamic mix of debt and equity investments without assurance of achieving significant objectives as realized by the investors in the investment.
It is a growth based open-ended fund type. This fund was launched on 4th January 2012 with a minimum investment of Rs.5000. It has an asset size of Rs.2838.11 crore with a benchmark of S&P BSE SENSEX.
The return for this liquid fund is:
| Period | Return (%) |
| 6 month | 4.8 |
| 1 year | -2.9 |
| 3 years | 11.2 |
HSBC Dynamic Asset Allocation Direct Fund – G
They provide long-term appreciation in capital by allocating funds in equity related instruments. Moreover, they are also flexible enough to move towards investment in debt even if views about equity market is in a negative way.
They are an open-ended fund with a growth investment plan. It was launched on 1st January 2013 and has a Benchmark of S&P BSE 200. It has an asset size of Rs.1.16 crore and requires a minimum investment of Rs.10000.
The return for this liquid fund is:
| Period | Return (%) |
| 6 month | 0.2 |
| 1 year | 0.5 |
| 3 years | 10.5 |
ICICI Prudential Balanced Advantage Direct Fund – Growth
This scheme generates capital appreciation and income for the investors by using arbitrage opportunities, equity derivatives, and pure equity investments.
It is a growth based open-ended fund which was launched on 1st February 2013. It has a Benchmark of CRISIL Balance Fund with a minimum investment of Rs.500 with asset size of Rs.2432 crore.
The return for this liquid fund is:
| Period | Return (%) |
| 6 month | 2.6 |
| 1 year | 2.8 |
| 3 years | 10.3 |
Reliance Balanced Advantage Direct Fund – G
It capitalizes on potential upside in market-related to equity using dynamic management of the portfolio via investment in equity related instruments, debt and money market instruments without any guarantee.
It was launched on 1st February 2013 with open-ended growth investment plan. This Fund requires a minimum investment of Rs.5000 with asset size of Rs.37.96 crore. It has a Benchmark of S&P BSE 200.
The return for this liquid fund is:
| Period | Return (%) |
| 6 month | 2.3 |
| 1 year | 1.5 |
| 3 years | 10.5 |
SBI Dynamic Asset Allocation Direct Fund – G
It provides the investors with the opportunity of investing in equity and its related security which is dynamically managed and thus provides it long-term capital appreciation.
This is a close-ended growth-related fund. It was launched on 24th March 2018 with a minimum investment of Rs.500 and now has an asset size of Rs.17.96 crore.
The return for this liquid fund is:
| Period | Return (%) |
| 6 month | 1.1 |
| 1 year | 10.4 |
| 3 years | 10.5 |
Invesco India Dynamic Equity Direct-G
It provides capital appreciation by doing investment in dynamically managed equity and debt-related securities. It is growth related open-ended investment plan and was launched on 4th October 2007.
Its Benchmark is S&P BSE 100 with a minimum investment of Rs.5000 and asset size of Rs.37.7 crore.
The return for this liquid fund is:
| Period | Return (%) |
| 6 month | -3.3 |
| 1 year | -3.5 |
| 3 years | 9.8 |
DSP Dynamic Asset Allocation Fund Direct-Growth
This fund manages the asset allocation between specified debt and equity-related mutual funds so as to provide capital appreciation for the investors.
It is growth related open-ended fund which was launched on 31st January 2014. Its Benchmark is CRISIL Balance Fund with an asset size of Rs.36.81 crore and requires a minimum investment of Rs.500.
The return for this liquid fund is:
| Period | Return (%) |
| 6 month | 4.6 |
| 1 year | 4.9 |
| 3 years | 8.7 |
Franklin India Dynamic PE Ratio FoF Direct Fund – G
It provides high capital appreciation with lower volatility via a dynamically balanced portfolio of income and equity funds.
It is an open-ended growth fund with Benchmark of S&P BSE SENSEX. This fund was launched on 17th October 2003 with a minimum investment of Rs.5000 and has an asset size of Rs.863.73 crore.
The return for this liquid fund is:
| Period | Return (%) |
| 6 month | 3.4 |
| 1 year | 4.2 |
| 3 years | 8.9 |
L&T Dynamic Equity Direct Fund – G
It generates capital appreciation from a diversified portfolio based on equity and its related securities. This fund has a growth investment plan with open-ended fund type and was launched on 1stJanuary 2013.
It has a Benchmark of S&P BSE 200 with a minimum investment of Rs.5000 and has an asset size of Rs.13.55 crore.
The return for this liquid fund is:
| Period | Return (%) |
| 6 month | 0.5 |
| 1 year | 4.2 |
| 3 years | 6.6 |
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