Should I start SIP In Dynamic Asset Allocation funds?
Based on market movements, dynamic asset allocation funds, also known as balanced benefit funds, actively manage their allocation to equities and debt securities. Therefore, investing in these funds can offer you the potential for long-term wealth as well as downside protection in the event of a downturn in the stock markets.
According to the performance report of ICRA Analytics Ltd, Dynamic Asset Allocation Funds had a three-month return of 5.51%, a six-month return of 10.14%, a one-year return of 26.1%, a three-year return of 11.37%. , a five-year yield of 9.74% and a ten-year yield of 12.15% as of September 30, 2021.
With minimal risk exposure, these returns can be a decent approach for investors in a bearish market scenario to start SIP in dynamic asset allocation funds with an investment horizon of at least 3 years or more.
According to data from ICRA Analytics Ltd, in September 2021, contributions to mutual funds under the Systematic Investment Plan (SIP) exceeded Rs 10,000 for the first time, totaling Rs 10,351 crore, up by 13% from June 2021. SIP AUM climbed 8% in September 2021 after hitting Rs. 5 lakh crore milestone in July 2021.
SIP AUM was Rs. 5.45 lakh crore at the end of the quarter, up about 13% from the previous quarter. It accounted for 15% of total industry assets, while SIP accounts grew 12% to 4.49 crore. Therefore, we would like to suggest our readers to stick with their SIPs or start SIP in dynamic asset allocation funds to accommodate takeout in their portfolio like the power of cap, average of costs in rupees and a low initial investment.
Edelweiss Balanced Advantage Fund Direct-Growth
The direct growth returns of the Edelweiss Balanced Advantage Fund over the past year are 29.10%. Since its launch, it has generated average annual returns of 13.65%, according to data from the fund house as of November 18, 2021. The equity side of the fund is primarily engaged in the financial, technological, energy, and property sectors. rapidly changing consumer and automotive sectors. ICICI Bank Ltd., Reliance Industries Ltd – PPE, National Bank for Agriculture and Rural Development, Infosys Ltd. and Nifty 50 are the top five holdings of the fund.
The fund has an expense ratio of 0.45%, which is lower than most other funds in the same category. The fund now has an equity allocation of 59.90 percent and a debt exposure of 20.09 percent. As of September 30, 2021, Edelweiss Balanced Advantage Fund Direct-Growth had Rs 6,331 crore in assets under management (AUM), and the fund’s net asset value was 39.35 crore as of November 18, 2021. Value Research assigned the fund a 5 star rating, and you can start investing in it with Rs 500 SIP.
|Representation as of November 18, 2021||Scheme||Benchmark System CRISIL Hybrid 50 + 50 – Moderate Index||Additional benchmark NIFTY 50 – TRI|
|Period||Return (TCCA)||Return (TCCA)||Return (TCCA)|
|Since creation – Existing plan||13.65%||9.41%||14.17%|
Kotak Balanced Advantage Fund Direct Growth
Kotak Balanced Advantage Fund Direct has a one-year rate of return of 19.96%. According to the fund house’s date of 11/18/2021, it has generated average annual returns of 13.26% since its inception. The fund has its allocation to stocks in the financials, metals, services, technology and energy sectors. The fund’s top five holdings are GOI, ICICI Bank Ltd., Adani Ports and Special Economic Zone Ltd. and Infosys Ltd. The fund has an expense ratio of 0.45%, which is lower than most other dynamic asset allocation funds.
The fund now has an equity allocation of 78.73 percent and a debt exposure of 21.27 percent. Kotak Balanced Advantage Fund Direct-Growth had Rs 11,813.44 crore in assets under management (AUM) as of September 30, 2021, and the net asset value of the fund was Rs 15.07 crore as of November 18, 2021. The fund is rated 5 stars by Value Research, and you can start SIP with Rs 500.
|Tenors||Since inception||Last 5 years||Last 3 years||1 last year|
|Kotak Balanced Advantage Fund – Direct (G)||13.26%||–||15.02%||19.96%|
|Nifty 50 Hybrid Composite Debt 50:50 Index||13.49%||13.43%||15.69%||20.87%|
|Clever 50 TRI||15.87%||18.54%||19.88%||38.88%|
|Performances as of 18.11.2021. Source: kotakmf.com|
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