Balanced mutual funds are suitable for investors who are ready to take market risk but also looking for some fixed income from their investment. Investors should not confuse balanced advantage funds with erstwhile balanced funds which are now aggressive hybrid funds. Some of the best balanced advantage mutual funds are listed in this article.
What is Balanced Advantage Mutual Fund?
Balanced advantage funds, also known as dynamic asset allocation funds, are hybrid mutual funds that invest in a mix of equity and debt instruments dynamically depending on the prevailing stock market conditions to yield excellent overall returns. In balanced advantage funds (BAFs), mutual fund managers utilize a process driven approach to shift the portfolio between equity and debt depending on the key market ratios or in house parameters.
For example, they will invest less in equity and more in debt when stock prices are high and more in equities when stock prices are low. This is the reason, investment value doesn’t drop considerably when stock prices are very high because the larger portion of the investment is in debt securities. Investors can reap maximum returns when the market recovers because the fund manager would have tilted the asset allocation more towards equities when the markets were low.
Best Balanced Advantage Mutual Funds in 2022
Listed below are the best performing balanced advantage mutual funds in India in 2022. Resident and NRI investors can invest in balanced advantage mutual funds in India.
| BAF | 3-month | 6-month | 1-year | 3-year | 5-year | 2021 |
|---|---|---|---|---|---|---|
| HDFC Balanced Advantage Fund | 15.4% | 10.5% | 16.1% | 17.7% | 11.3% | 26.4% |
| Nippon India Balanced Advantage Fund | 10.5% | 6% | 5% | 11.9% | 8.3% | 15.7% |
| ICICI Prudential Balanced Advantage Fund | 8.7% | 5.6& | 8.3% | 13% | 10% | 15.1% |
| Aditya Birla Sun Life Balanced Advantage Fund | 10% | 4.4% | 3.2% | 12.1% | 8.4% | 13.4% |
| Edelweiss Balanced Advantage Fund | 10.9% | 3.1% | 2.6% | 15.9% | 10.8% | 18.8% |
| Invesco India Dynamic Equity Fund | 13% | 4.5% | 3% | 9.4% | 5.9% | 13.1% |
| L&T Dynamic Equity Fund | 7.8% | 2.6% | 0.8% | 8.7% | 7.3% | 8.4% |
Note: Returns up to 1 year are on an absolute basis & more than 1 year are on a CAGR basis as on 20 Sep 2022.
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Key Features of Top Performing Advantage Mutual Funds
HDFC Balanced Advantage Fund
| Mutual Fund House | HDFC Asset Management Company Limited |
| Launch date | 11 September 2000 |
| Net Asset Value | Rs. 313.803 |
| Category | Hybrid – Dynamic allocation |
| Rating | 4* |
| Risk | Moderately high |
| Minimum investment | Rs. 5,000 |
| Min SIP | Rs. 300 |
| Exit load | 0-1 Years (1%),1 Years and above(NIL) |
Nippon India Balanced Advantage Fund
| Mutual Fund House | Nippon Life Asset Management Ltd. |
| Launch date | 15 November 2004 |
| Net Asset Value | Rs. 127.077 |
| Category | Hybrid – Dynamic allocation |
| Rating | 3* |
| Risk | Moderately high |
| Minimum investment | Rs. 5,000 |
| Min SIP | Rs. 100 |
| Exit load | 0-1 Years (1%),1 Years and above(NIL) |
ICICI Prudential Balanced Advantage Fund
| Mutual Fund House | ICICI Prudential Asset Management Company Limited |
| Launch date | 30 December 2006 |
| Net Asset Value | Rs. 52.09 |
| Category | Hybrid – Dynamic allocation |
| Rating | 3* |
| Risk | Moderately high |
| Minimum investment | Rs. 5,000 |
| Min SIP | Rs. 100 |
| Exit load | 0-18 months (1%),18 months and above(NIL) |
Aditya Birla Sun Life Balanced Advantage Fund
| Mutual Fund House | Birla Sun Life Asset Management Co Ltd. |
| Launch date | 25 April 2000 |
| Net Asset Value | Rs. 75.26 |
| Category | Hybrid – Dynamic allocation |
| Rating | 3* |
| Risk | Moderately high |
| Minimum investment | Rs. 1,000 |
| Min SIP | Rs. 100 |
| Exit load | 0-1 year (1%), 1 year and above(NIL) |
Edelweiss Balanced Advantage Fund
| Mutual Fund House | Edelweiss Asset Management Limited. |
| Launch date | 20 August 2009 |
| Net Asset Value | Rs. 36.6 |
| Category | Hybrid – Dynamic allocation |
| Rating | 2* |
| Risk | Moderately high |
| Minimum investment | Rs. 1,000 |
| Min SIP | Rs. 500 |
| Exit load | 0-1 year (1%), 1 year and above(NIL) |
Invesco India Dynamic Equity Fund
| Mutual Fund House | Invesco Asset Management (India) Private Ltd. |
| Launch date | 04 October 2007 |
| Net Asset Value | Rs. 37.97 |
| Category | Hybrid – Dynamic allocation |
| Rating | 2* |
| Risk | Moderately high |
| Minimum investment | Rs. 5,000 |
| Min SIP | Rs. 500 |
| Exit load | NIL |
L&T Dynamic Equity Fund
| Mutual Fund House | L&T Investment Management Ltd. |
| Launch date | 07 February 2011 |
| Net Asset Value | Rs. 31.345 |
| Category | Hybrid – Dynamic allocation |
| Rating | 2* |
| Risk | Moderately high |
| Minimum investment | Rs. 5,000 |
| Min SIP | Rs. 500 |
| Exit load | 0-1 year (1%); 1 year and above (NIL) |
How can NRIs complete their KYC
You can download SBNRI app to complete your KYC as an NRI and start investing in mutual funds in India from the country where they live. Following are the steps you need to follow:
- Complete your KYC: You can complete the KYC process effortlessly. Type in your personal details and attach supporting documents, like:
- PAN Number
- Overseas address proof: Any of – Water/ electricity bill, postpaid mobile/ internet bill, rent agreement, driving license, etc.
- Passport – front and back
- Passport size photograph
- Signature
If all details are correct, your KYC will be approved within 7 to 8 business days.
- Onboarding: After KYC, you need to share the following details to complete onboarding process and start investing:
- City and country of birth
- NRE/ NRO bank account statement/ canceled cheque for the latest 3 months
- Nominee details
Before investing in the Indian market, NRIs must consult market experts to make informed decisions. You can get detailed mutual fund advisory from experts at SBNRI. You can download SBNRI App from the Google Play Store or App Store to ask any questions related to mutual fund investment, NRI account opening online and tax filing in India. To ask any questions related to Mutual Funds, click on the button below. Also visit our blog and YouTube channel for more details.
