Best Balanced Advantage Funds – Balanced Advantage Funds

The table below shows a list Of the Best Balanced Advantage Mutual funds based on AUM, NAV, and minimum SIP.

Introduction to Balanced Advantage Mutual Funds

HDFC Balanced Advantage Fund

HDFC Balanced Advantage Fund Direct Plan-Growth is a Dynamic Asset Allocation mutual fund scheme from HDFC Mutual Fund. This fund has been in existence for 11 years and 8 months, having been launched on 01/01/2013.

HDFC Balanced Advantage Fund as a Balanced Advantage fund, manages assets valued at ₹94048.24 crore. Over the past 5 years, it has achieved a Compound Annual Growth Rate (CAGR) of 22.98%. This fund has an exit load of 1% and an expense ratio of 0.73%. According to SEBI, it falls under the Very High-risk category. The fund’s asset allocation comprises: Equity –  49.98%, Debt – 29.3%, and Other – 20.72%.

ICICI Pru Balanced Advantage Fund

ICICI Prudential Balanced Advantage Direct-Growth is a Dynamic Asset Allocation mutual fund scheme from ICICI Prudential Mutual Fund. This fund has been in existence for 11 years and 8 months, having been launched on 01/01/2013. 

ICICI Pru Balanced Advantage Fund as a Balanced Advantage fund, manages assets valued at ₹61103.40 crore. Over the past 5 years, it has achieved a Compound Annual Growth Rate (CAGR) of 15.84%. This fund has an exit load of 1% and an expense ratio of 0.85%. According to SEBI, it falls under the Very High-risk category. The fund’s asset allocation comprises: Equity –  49.58%, Debt – 18.63%, and Other – 31.79%.

SBI Balanced Advantage Fund

SBI Balanced Advantage Fund Direct-Growth is a Dynamic Asset Allocation mutual fund scheme from SBI Mutual Fund. This fund has been in existence for 3 years and 1 month, having been launched on 12/08/2021. 

SBI Balanced Advantage Fund as a Balanced Advantage fund, manages assets valued at ₹32440.91 crore. Over the past 3 years, it has achieved a Compound Annual Growth Rate (CAGR) of 14.86%. This fund has an exit load of 1% and an expense ratio of 0.68%. According to SEBI, it falls under the Very High-risk category. The fund’s asset allocation comprises: Equity –  30.37%, Debt – 27.07%, and Other – 42.55%.

Kotak Balanced Advantage Fund

Kotak Balanced Advantage Fund Direct-Growth is a Dynamic Asset Allocation mutual fund scheme from Kotak Mahindra Mutual Fund. This fund has been in existence for 6 years and 2 months, having been launched on 13/07/2018.

Kotak Balanced Advantage Fund a Balanced Advantage fund, manages assets valued at ₹16988.47 crore. Over the past 5 years, it has achieved a Compound Annual Growth Rate (CAGR) of 15.38%. This fund has an exit load of 1% and an expense ratio of 0.51%. According to SEBI, it falls under the Very High-risk category. The fund’s asset allocation comprises: Equity –  54.61%, Debt – 23.24%, and Other – 22.15%.

Tata Balanced Adv Fund

Tata Balanced Advantage Fund Direct-Growth is a Dynamic Asset Allocation mutual fund scheme from Tata Mutual Fund. This fund has been in existence for 5 years and 8 months, having been launched on 09/01/2019.

Tata Balanced Adv Fund as a Balanced Advantage fund, manages assets valued at ₹10051.50 crore. Over the past 5 years, it has achieved a Compound Annual Growth Rate (CAGR) of 16.73%. This fund has an exit load of 1% and an expense ratio of 0.35%. According to SEBI, it falls under the Very High-risk category. The fund’s asset allocation comprises: Equity –  47.95%, Debt – 24.65%, and Other – 27.4%.

Nippon India Balanced Advantage Fund

Nippon India Balanced Advantage Fund Direct-Growth is a Dynamic Asset Allocation mutual fund scheme from Nippon India Mutual Fund. This fund has been in existence for 11 years and 8 months, having been launched on 01/01/2013.

Nippon India Balanced Advantage Fund as a Balanced Advantage fund, manages assets valued at ₹8802.55 crore. Over the past 5 years, it has achieved a Compound Annual Growth Rate (CAGR) of 15.97%. This fund has an exit load of 1% and an expense ratio of 0.55%. According to SEBI, it falls under the Very High-risk category. The fund’s asset allocation comprises: Equity –  57.78%, Debt – 22.08%, and Other – 20.14%.

Aditya Birla SL Balanced Advantage Fund

Aditya Birla Sun Life Balanced Advantage Fund Direct-Growth is a Dynamic Asset Allocation mutual fund scheme from Aditya Birla Sun Life Mutual Fund. This fund has been in existence for 11 years and 8 months, having been launched on 01/01/2013.

Aditya Birla SL Balanced Advantage Fund as a Balanced Advantage fund, manages assets valued at ₹7560.12 crore. Over the past 5 years, it has achieved a Compound Annual Growth Rate (CAGR) of 16.08%. This fund has an exit load of 0.25% and an expense ratio of 0.68%. According to SEBI, it falls under the Very High-risk category. The fund’s asset allocation comprises: Equity –  52.79%, Debt – 20.7%, and Other – 26.51%.

NJ Balanced Advantage Fund

NJ Balanced Advantage Fund- Regular Plan Growth is a Dynamic Asset Allocation mutual fund scheme from NJ Mutual Fund. This fund has been in existence for 2 years and 11 months, having been launched on 29/10/2021.

NJ Balanced Advantage Fund as a Balanced Advantage fund, manages assets valued at ₹4184.63 crore. Over the past 1 year, it has achieved a Compound Annual Growth Rate (CAGR) of 32.6%. This fund has an exit load of 1% and an expense ratio of 0.62%. According to SEBI, it falls under the Very High-risk category. The fund’s asset allocation comprises: Equity –  68.68%, Debt – 21.01%, and Other – 10.31%.

Baroda BNP Paribas Balanced Advantage Fund

Baroda BNP Paribas Balanced Advantage Fund Direct-Growth is a Dynamic Asset Allocation mutual fund scheme from Baroda Bnp Paribas Mutual Fund. This fund has been in existence for 5 years and 10 months, having been launched on 22/10/2018. 

Baroda BNP Paribas Balanced Advantage Fund as a Balanced Advantage fund, manages assets valued at ₹4065.56 crore. Over the past 5 years, it has achieved a Compound Annual Growth Rate (CAGR) of 19.67%. This fund has an exit load of 1% and an expense ratio of 0.73%. According to SEBI, it falls under the Very High-risk category. The fund’s asset allocation comprises: Equity –  56.9%, Debt – 19.96%, and Other – 23.14%.

Axis Balanced Advantage Fund

Axis Balanced Advantage Fund Direct-Growth is a Dynamic Asset Allocation mutual fund scheme from Axis Mutual Fund. This fund has been in existence for 7 years and 2 months, having been launched on 11/07/2017. 

Axis Balanced Advantage Fund as a Balanced Advantage fund, manages assets valued at ₹2466.12 crore. Over the past 5 years, it has achieved a Compound Annual Growth Rate (CAGR) of 15.15%. This fund has an exit load of 1% and an expense ratio of 0.84%. According to SEBI, it falls under the Very High-risk category. The fund’s asset allocation comprises: Equity –  59.92%, Debt – 26.86%, and Other – 13.24%.

What Are Balanced Advantage Funds?

Balanced Advantage Funds are hybrid mutual funds that dynamically allocate investments between equities and fixed-income securities. They aim to optimize returns while managing risk by adjusting the asset mix based on market conditions and valuations, appealing to both conservative and aggressive investors.

These funds utilize a flexible investment strategy, allowing fund managers to switch between asset classes as market dynamics evolve. This adaptability helps mitigate risks associated with market volatility, making them suitable for investors looking for a balanced approach without the need for constant monitoring.

Investors in Balanced Advantage Funds benefit from professional management and diversification, which can enhance overall portfolio stability. Typically, these funds are ideal for those seeking long-term growth with reduced risk, particularly in uncertain market environments.

Features of the Best Balanced Advantage Fund India

The main features of the best Balanced Advantage Fund in India include dynamic asset allocation, strong historical performance, experienced fund management, and transparency. These attributes ensure that the fund effectively balances risk and return while adapting to changing market conditions.

1. Dynamic Asset Allocation: The best funds actively adjust their equity and debt allocations based on market conditions. This flexibility allows for optimized returns and risk management, enabling the fund to capitalize on opportunities while protecting capital during market downturns.
2. Strong Historical Performance: Top Balanced Advantage Funds exhibit consistent historical performance relative to their benchmarks and peers. Evaluating long-term returns helps investors identify funds that have effectively navigated various market cycles and delivered reliable growth over time.
3. Experienced Fund Management: A skilled management team with a proven track record is crucial for a fund’s success. Experienced managers possess the expertise to analyze market trends and make informed investment decisions, enhancing the fund’s ability to achieve its objectives.
4. Transparency: The best funds maintain transparency in their investment strategies, fee structures, and performance reporting. Clear communication regarding portfolio holdings and management decisions fosters investor confidence and allows for informed decision-making about ongoing investment.

Best Balanced Advantage Funds To Invest In Based on Expense Ratio

The table below shows the Best-performing Balanced Advantage Mutual Fund Based on the highest to lowest expense ratio.

List Of Balanced Advantage Funds Based on 3Y CAGR

The table below shows the Best Balanced Advantage Mutual Fund Based on the Highest 3Y CAGR.

List Of Balanced Advantage Mutual Funds Based on Exit Load

The table below shows Best Performing Balanced Advantage Mutual Fund In India based on Exit Load, i.e., the fee that the AMC charges investors when they exit or redeem their fund units.

Balanced Advantage Fund Returns

The table below shows Balanced Advantage Mutual Fund Returns Based on 1-year returns.

Historical Performance of Balanced Advantage Funds

The table below shows the Historical Performance Of Balanced Advantage Mutual Fund based on 5-year returns.

Factors to Consider When Investing in Balanced Advantage Mutual Funds

The main factors to consider when investing in Balanced Advantage Mutual Funds include investment objectives, risk tolerance, expense ratios, and the fund manager’s track record. Evaluating these elements helps ensure the fund aligns with your financial goals and investment strategy.

• Investment Objectives: Clearly define your investment goals before choosing a fund. Whether seeking growth, income, or capital preservation, aligning the fund’s strategy with your objectives ensures that it meets your financial needs over the desired investment horizon.
• Risk Tolerance: Assess your risk appetite to determine the appropriate level of equity exposure within the fund. Understanding your comfort with market fluctuations helps in selecting a fund that balances potential returns with the risk level you’re willing to accept.
• Expense Ratios: Evaluate the fund’s expense ratios, including management fees and other costs, as they directly impact overall returns. Lower expense ratios can lead to higher net gains over time, making cost-effective funds more appealing for long-term investments.
• Fund Manager’s Track Record: Research the fund manager’s experience and historical performance. A manager with a consistent track record of navigating market challenges and delivering returns can instill confidence in the fund’s ability to achieve its investment objectives effectively.

How to Invest in Top Balanced Advantage Funds?

To invest in top Balanced Advantage Funds, start by researching various funds available in the market. Analyze their historical performance, expense ratios, and risk profiles to identify options that align with your financial goals and risk tolerance, ensuring a well-informed decision.

Next, consider factors such as the fund manager’s experience, the fund’s investment strategy, and its consistency in managing risk. Look for funds with a solid track record and a transparent investment approach to ensure they can navigate market fluctuations effectively over time.

Once you’ve selected a fund, you can invest through Alice Blue. Make sure to read the offer document and understand the fee structure, keeping in mind your investment horizon and financial objectives for optimal results.

Impact of Market Trends on Top Balanced Advantage Mutual Funds

Market trends significantly influence top Balanced Advantage Mutual Funds by affecting asset allocation between equities and fixed-income securities. During bullish markets, funds may increase equity exposure to capitalize on growth, while in bearish conditions, they often shift towards safer bonds to protect capital.

Additionally, changing interest rates and economic indicators can impact fund performance. Rising interest rates may lead to reduced equity valuations, prompting managers to adjust their strategies accordingly. Staying attuned to these trends helps investors better understand the fund’s potential risks and rewards.

How Balanced Advantage Funds Perform in Volatile Markets?

Balanced Advantage Funds typically perform better in volatile markets due to their flexible asset allocation strategy. Fund managers actively adjust the mix of equities and bonds, allowing for risk mitigation while seizing growth opportunities, thus providing a buffer against market swings.

During downturns, these funds can shift towards safer fixed-income assets, reducing overall portfolio risk. This dynamic approach helps preserve capital and provides more stability compared to pure equity funds, making Balanced Advantage Funds an attractive option for risk-averse investors in uncertain market conditions.

Advantages of Investing in Balanced Advantage Mutual Funds

The main advantages of investing in Balanced Advantage Mutual Funds include diversified asset allocation, risk management, professional management, and potential for capital appreciation. These funds offer a balanced approach, catering to investors seeking both growth and stability in their investment portfolios.

• Diversified Asset Allocation: Balanced Advantage Funds invest in both equities and fixed-income securities, spreading risk across different asset classes. This diversification helps cushion against market volatility, enhancing overall portfolio stability and reducing the impact of poor performance in any single investment.
• Risk Management: These funds dynamically adjust their equity and debt allocations based on market conditions, providing a built-in mechanism for risk management. By reallocating assets in response to market trends, they aim to protect investors during downturns while capitalizing on growth opportunities.
• Professional Management: Investing in Balanced Advantage Funds means benefiting from the expertise of experienced fund managers. They conduct thorough research and analysis to make informed investment decisions, allowing individual investors to leverage professional knowledge without needing to actively manage their portfolios.
• Potential for Capital Appreciation: Balanced Advantage Funds seek to provide long-term capital appreciation by investing in equities during favorable market conditions. This potential for growth, combined with the stability of fixed-income investments, makes these funds an appealing choice for various investors.

Risks of Investing in Balanced Advantage Mutual Funds

The main risks of investing in Balanced Advantage Mutual Funds include market volatility, interest rate fluctuations, management risk, and potential liquidity issues. While these funds aim to balance risk and return, investors should be aware of these factors that can impact performance.

• Market Volatility: Market fluctuations can significantly impact equity portions of the fund. In downturns, the value of investments may decline, affecting overall returns despite the fixed-income allocation intended to mitigate risks.
• Interest Rate Fluctuations: Changes in interest rates can adversely affect bond valuations within the fund. Rising rates typically lead to falling bond prices, which may diminish overall returns, particularly if the fund holds a substantial portion in fixed-income securities.
• Management Risk: The fund’s performance heavily depends on the expertise of its manager. Poor decision-making or misallocation of assets can lead to suboptimal returns, highlighting the importance of selecting a fund with a skilled management team.
• Liquidity Issues: In times of market stress, selling assets to meet redemption requests can be challenging. This may lead to forced sales at unfavorable prices, impacting fund performance and potentially causing delays in processing investor withdrawals.

Contribution of Balanced Advantage Funds to Portfolio Diversification

Balanced Advantage Funds enhance portfolio diversification by combining equities and fixed-income assets in a single investment. This hybrid approach helps spread risk across different asset classes, mitigating the impact of market volatility and providing more stable returns over time.

Additionally, these funds adapt to changing market conditions, allowing for dynamic reallocation based on valuations and economic indicators. This flexibility not only reduces overall portfolio risk but also offers the potential for capital appreciation, making Balanced Advantage Funds a valuable component of a well-rounded investment strategy.

Who Should Invest in Balanced Advantage Funds?

Balanced Advantage Funds are ideal for investors seeking a balance between growth and risk management. They suit individuals who want exposure to equities without the volatility of pure equity funds, making them suitable for both conservative and moderately aggressive investors.

Additionally, these funds appeal to those with a long-term investment horizon who prefer professional management and diversification. Investors looking for a more hands-off approach to asset allocation can benefit from the dynamic strategies employed by fund managers to navigate changing market conditions effectively.

Impact of Fund Manager Expertise on Balanced Advantage Mutual Funds Performance

The expertise of fund managers plays a crucial role in the performance of Balanced Advantage Mutual Funds. Skilled managers can effectively assess market trends and economic indicators, making informed decisions on asset allocation that optimize returns while minimizing risks during volatile periods.

Experienced managers also bring a wealth of knowledge in risk management strategies, allowing for timely adjustments in response to market fluctuations. Their ability to identify undervalued assets and capitalize on opportunities can significantly enhance fund performance, benefiting investors seeking long-term growth and stability.

How Much Money Should I Invest In Balanced Advantage Funds?

The amount to invest in Balanced Advantage Funds depends on your financial goals, risk tolerance, and overall investment strategy. Generally, it’s advisable to allocate a portion of your portfolio typically 10-30% to these funds for balanced growth and risk management.

Additionally, consider your investment horizon and liquidity needs. If you’re aiming for long-term growth and can withstand short-term fluctuations, a higher allocation may be suitable. Regularly review your investment mix to ensure it aligns with your evolving financial objectives and market conditions.

Balanced Advantage Fund taxation

Balanced Advantage Funds are subject to capital gains tax, which depends on the holding period. If held for less than one year, short-term capital gains are taxed at 15%. For investments held longer, long-term capital gains exceeding ₹1 lakh are taxed at 10%.

Additionally, dividends received from these funds are taxed as per the investor’s income tax slab. Understanding these tax implications is crucial for effective financial planning, as they can impact overall returns and net investment performance over time.

FAQs – List Of Balanced Advantage Mutual Funds

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Disclaimer: The above article is written for educational purposes, and the company’s data mentioned in the article may change over time.