If you are planning to invest in a mutual fund scheme, it is acceptable to examine the past few years’ returns given by the scheme. Wealth advisors often advise retail investors to judge a scheme’s future potential based on factors such as the category it belongs to, the fund house which manages the scheme, and the overall macro scenario of the market. Regardless, past returns are also considered too important to be overlooked by existing and potential investors.
Here we list out the top-performing dynamic asset allocation funds based on their past three years’ returns:
Dynamic asset allocation funds
These hybrid mutual funds are mandated to invest in equity or debt financial instruments in an unspecified ratio, which is managed dynamically (i.e., 0 to 100 per cent in equity and 0 to 100 per cent in debt instruments). These funds are also known as balanced advantage funds.
They are part of a broader category of ‘hybrid mutual funds‘ which are further subdivided into categories such as conservative hybrid, balanced hybrid, aggressive hybrid and multi-asset allocation.
Dynamic asset allocation funds have a total of 34 schemes with total assets under management (AUM) amounting to ₹2.89 lakh crore, which is the highest among all hybrid mutual fund categories.
Here, we list out the top-performing dynamic asset allocation funds which gave more than 12 per cent annualised return in the past three years.
(Source: AMFI; Returns as on Oct 24, 2024)
As we can see in the table above, HDFC Balanced Advantage Fund delivered the highest return (20.67 per cent) in the past three years. This was followed by Bank of India Balanced Advantage Fund (14.11 per cent) and SBI Balanced Advantage Fund (13.04 per cent).
When it comes to fund size, the largest fund in the above list is HDFC Balanced Advantage Fund with total assets under management of ₹94,936 crore and the smallest is Bank of India Balanced Advantage Fund with an asset size of only ₹134.57 crore.
It is noteworthy to mention that the historical returns, despite giving an indication of a fund’s future potential, do not guarantee anything. In other words, the past three years’ returns of these schemes highlighted above may or may not continue in the future.
Note: This story is for informational purposes only. Please speak to a SEBI-registered investment advisor before making any investment-related decision.