scripbox logo
    scripbox logo
    search iconsearch icon
    user avatarLogin
    • right-arrow
    • Mutual Funds
      right-arrow
    • Dynamic Asset Allocation Funds (DDA)

    Dynamic Asset Allocation Funds (DDA)

    Invest in the best dynamic asset allocation funds recommended by Scripbox that are algorithmically selected that best suit your needs

    long term funds

    Long Term Wealth

    Top equity mutual funds for long-term goals

    5+ years

    short term funds

    Short Term Money

    Best debt mutual funds for short term investing

    1-5 years

    tax saving funds

    Tax Saver Plan

    Top ELSS funds to save tax the smart way

    Lowest lock-in

    emergency funds

    Emergency Money

    Top liquid funds for life's surprise expenses

    Under 1 year

    equity-funds

    See all equity funds

    Top Equity mutual funds for long-term growth

    Filters

    Reset Filters1

    Scripbox Opinion

    Fund Category

    EquityDebtHybridInternational EquitySolution Oriented

    Minimum Investment

    500+

    Fund House

    See 40 other fund houses

    Show advanced filters

    List of Dynamic Asset-allocation Mutual Funds

    Sort by

    Dynamic Asset Allocation Or Balanced Advantage

    close
    Fund NameScripbox Opinion
    Till Date CAGR

    Edelweiss Balanced Advantage Fund (G)

    16%

    11.2%

    9.3%

    9.3%

    -

    15.1%

    13.6%

    18.2%

    12.8%

    11.3%

    -

    18.4%

    13.9%

    11.6%

    10.1%

    11.3%

    13.4%

    12.4%

    12%

    16%

    13.3%

    -

    11.4%

    9.5%

    12.3%

    13.2%

    7.5%

    8.2%

    12.7%

    -

    12.3%

    13.2%

    10.2%

    7.8%

    15%

    12.9%

    9.5%

    11.1%

    -

    18.4%

    Achieve Life Goals

    Find funds that suit your investment objective
    my first crore

    My First Crore

    retire confidently

    Retire Confidently

    child-education

    Child Education

    dream planner

    Dream Planner

    PreviousNext

    Explore best mutual funds across categories

    Best Mutual Funds

    The best performing mutual funds to invest in 2021

    Best Equity Funds

    The best performing equity mutual funds to invest in 2021.

    Best Debt Funds

    The best performing debt mutual funds to invest in 2021

    Best ELSS Funds

    The best performing ELSS tax saving mutual funds to invest in 2021

    Best Liquid Funds

    The best performing liquid mutual funds to invest in 2021

    Best SIP FundsBest Debt FundsBest Diverisifed FundsBest Mid Cap FundsBest Tax Saver FundsBest Large Cap FundsBest International FundsBest Small Cap FundsBest Short Term FundsBest Index FundsBest Long Term FundsBest Multi Cap Funds
    How does Scripbox rate funds?

    Proprietary 4-step system to rate mutual funds

    We use a proprietary system to rate mutual funds and based on that make a recommendation or rate the fund as top ranked.

    What Scripbox recommendations mean?
    Scripbox algorithm recommends 2-4 funds for investment for an investment asset class such as large cap, diversified, liquid etc. When you invest for an objective, the algorithm suggests the appropriate asset class and funds.
    Track Record

    Track Record

    We look at consistent and long historical performance for our analysis.

    Fund Size

    Fund Size

    We look at the size of the fund with respect to other funds in the category. Larger funds are preferred.

    Sub-asset Class View

    Sub-asset Class View

    We check if the sub-category of the fund is recommended by us.

    Fund Performance

    Fund Performance

    Consistency of performance over various tenures is analysed for a relative performance stack.

    Track Record

    Track Record

    We look at consistent and long historical performance for our analysis.

    Fund Size

    Fund Size

    We look at the size of the fund with respect to other funds in the category. Larger funds are preferred.

    Impact of Interest Rates

    Impact of Interest Rates

    We check the relative interest rate risk of the sub-category of the fund. Lower the better.

    Credit Attractiveness

    Credit Attractiveness

    We check the credit quality of the underlying instruments present in the fund. Higher the better.

    Equity Funds

    Debt Funds

    How to invest in Dynamic Asset Allocation Or Balanced Advantage Funds?

    Investing through Scripbox is made easy and paperless. All you need to do is follow the below steps and start investing.

    choose long term plan

    Choose a plan

    Choose a plan to invest to start investingmore...

    create account

    Create an Account

    Create an account with Scripbox through a paperless process, to invest in this fundmore...

    invest online

    Invest online & transfer

    Invest via netbanking, UPI or through an SIP (eNACH mandate).more...

    track investments

    Track your investments

    Track, invest more and withdraw your investments through the Scripbox dashboardmore...

    scripmark
    The Scripbox Promise

    Scripbox has helped over 2500 people become millionaires in the last 9 years

    Start Investing Now
    fund selection

    Fund Selection

    You'll never have to worry about what funds to choose. We'll suggest what's best for you.

    continuous monitoring

    Continuous monitoring & alerts

    We will track our recommendations and suggest changes & fund exists whenever required.

    call assistance

    All week call assistance

    Our customer champions are available 7 days a week from 8AM to 8PM.

    annual reviews

    Annual reviews & rebalances

    We review your investments and make course corrections every year to make the best out of your investments

    What are Dynamic Asset Allocation Funds?

    Dynamic Asset Allocation funds or Balanced Advantage Funds are hybrid funds that invest in a mix of asset classes. They usually invest in Equity, Debt, Equity Derivatives, Real Estate, etc. and are managed dynamically. Based on the investment objective of the fund, the fund manager determines the asset allocation for the fund. He actively monitors the investments and rebalances the portfolio based on the market conditions to keep it in line with the investment objective. Generally, when the valuations are low, the fund increases its equity exposure, and when valuations are high, lowers the equity exposure. The fund rebalancing is backed by proper research and quantitative analysis and is not subject to emotional bias.

    DAA funds invest in a way that minimizes risk based on market trends, and are targeted  at first time and low-risk appetite investors. DAA doesn’t involve having a target investment mix of assets. Therefore, the fund manager has a high degree of flexibility while rebalancing. The success of DAA funds depends not just on  market conditions but also on the manager’s decision-making ability. 

    Who should invest

    As Dynamic Asset Allocation funds invest in more than one asset class, they are designed for risk-averse investors. Long term investors who understand the risk-return trade off   and want a way to balance the Equity-Debt exposure in their portfolio might consider these investment options. As the fund manager himself will take care of the asset allocation during volatility, the investor need not worry about their investment. 

    Though equity investments are risky, they beat inflation in the long term, and debt investments earn guaranteed returns. DAA funds fill the gap and offer investors a solution that is designed to balance risk with good growth over the long term. 

    Find: Best Mutual Funds

    Importance of Dynamic Asset Allocation  

    • Diversification: ‘Don’t put all your eggs in one basket’.  As an investor never invest all your money in just one asset. Diversification is the key to better returns. DAA funds do just that. For investors who would like to diversify investments can invest in these. These are best suited for long-term and low-risk appetite investors as they have enough exposure to equity and debt. 
    • Better Returns: As DAA funds invest across different asset classes, market fluctuations don’t have a drastic impact on their returns. Hence these funds are considered to offer better returns over more risky investments. 
    • Volatility: An up or a downtrend of any asset class cannot sustain for  long. A downtrend follows every uptrend and vice versa. DAA funds are not too volatile as they invest in multiple asset classes. Though DAA funds don’t offer returns as high as that of a pure equity fund, their fall isn’t as drastic as an equity fund, because of their genuine diversification which minimizes the impact of volatility.

    Challenges of Dynamic Asset Allocation Mutual Funds

    Tax Structure:

    Each asset class has its tax structure. Equity taxation varies from that of debt. Within debt, Bonds, FDs, and debt MFs are taxed differently. Therefore, balancing taxation becomes a challenge while building a portfolio.

    Cost:

    Frequent rebalancing can be a costly affair with high transaction costs. Acquisition cost of a few assets isn’t cheap either. Frequent buying and selling will have an impact on overall returns. 

    Active Management:

    Dynamic Asset Allocation demands active management of the portfolio and rebalancing. It requires the fund manager to do extensive research and strategize his buying and selling. Therefore, the fund manager needs to dedicate a considerable amount of time to the fund‘s active management. 

    Dynamic asset allocation fund taxation:

    Dynamic Asset Allocation Funds are managed like equity mutual funds. The equity plus arbitrage is maintained around 65% or more, to be treated as an equity mutual fund for tax purposes. In instances where the assets under equity fall below 65%, the fund is managed like a debt mutual fund. Ergo, the tax for such funds depends on the allocation to equity assets in the fund.

    For an equity fund, the STCG of 15% is levied in the short-term. Short-term is if the investments are redeemed before completion of one year from the date of investment. In the long term, the LTCG of 10% is applicable for gains above 1,00,000 INR. For a debt fund, the STCG tax is similar to the tax slab the investor falls in. LTCG is taxed at 20% (with indexation) if the investments are redeemed after three years from the date of investment.

    Expenses

    The transaction costs in dynamic asset allocation funds are high when compared to a constant portfolio fund. With continuous rebalancing of the portfolio, the costs tend to be on the higher side. The expense ratio is calculated as a percentage of the NAV. Hence the gains tend to be lower in this case. 

    The expense ratio charged by the fund houses is less when compared to a DIY (Do Your Own) portfolio using the dynamic asset allocation strategy. The costs involved in continuous rebalancing plus the taxation will leave nothing for the investor. Hence, it is always optimal to choose a mutual fund over a DIY portfolio in this case.

    Dynamic Asset Allocation Funds in India

    Indian markets can be quite volatile. Any national and international news causes considerable volatility in the market. Be it political unrest in the country or Brexit or USA China tariff wars; everything affects the Indian market. 

    Dynamic asset allocation strategy best suits markets that are highly volatile. It is practically impossible to time a volatile market. Investing in pure equity or debt can be challenging. This strategy strikes a balance between risk and returns with lower drawdown than a pure equity investment and higher return than a pure debt investment.

    Explore Funds by Category

    Index FundsSmall Cap Funds
    Equity FundsDynamic Asset Allocation Funds
    Liquid FundsShort Term Funds
    Large Cap FundsRetirement Funds
    Debt FundsDiversified Funds
    Tax Saving FundsHybrid Funds
    Mid Cap FundsArbitrage Funds
    Corporate Bond FundsMoney Market Funds
    Childrens FundsGilt Funds
    Overnight FundsInternational Funds
    Ultra Short FundsBanking and PSU Funds
    Credit Risk FundsMulti Asset Allocation Funds
    Equity Savings FundsDynamic Bond Funds
    Low Duration FundsSolution Oriented Funds
    Long Duration FundsMedium Term Funds
    filter-btn
    Add Filter