3 best performing dynamic asset allocation funds rated 5 stars for SIP in 2021

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Why should you start SIP in dynamic asset allocation funds now?

Besides the strong influx, dynamic asset allocation funds also set a portfolio record of 35 27,506, net assets under management of Rs 1,49,883.93 Cr and average net assets under management of Rs 1,47 500.60 Cr as of September 30, 2021., according to data from AMFI, which also holds a record in the Hybrid Scheme category.

The data clearly shows how equity investors began to diversify their portfolios with debt in order to achieve risk-adjusted returns over the long term and relative to the bull market phase, and invest in allocation funds. dynamic assets may be a decent choice now because the market is at record highs and these funds are shifting their allocation to stocks and debt based on market scenarios in order to generate the best possible returns for investors with an appetite for money. low or moderate risk with a personal financial goal of 3 to 5 years.

Since dynamic asset allocation funds are a mixture of stocks and debt, the allocation percentage is changed by the fund manager depending on the evolution of the stock market, most funds in this category include a diversified equity portion that includes companies of all types of market capitalization and The debt component of the fund does not assume much credit risk and may generate minimal interest rates, resulting in a well-diversified portfolio both in terms of the rise and fall of the market.

This implies that during a market rise, investing in equities of the fund helps you profit from rising stock prices over the long term, while investments in fund debt protect your portfolio from a downturn in the market. or a bear market.

Starting SIP in the best performing dynamic asset allocation funds can now be a safe option in the current market scenario for investors who do not want to take higher risk by investing in pure equity funds such than mid, small or large caps, and who wish to generate anti-inflation and risk-adjusted returns over the long term without affecting market movements in their portfolio.

Therefore, based on the 5-star rating from Value Research, low expense ratio, past performance and other factors, we have chosen three dynamic asset allocation funds that you can consider to start your SIP in 2021.

Edelweiss Balanced Advantage Fund Direct-Growth

Edelweiss Balanced Advantage Fund Direct-Growth

It is a dynamic open-ended asset allocation fund that was launched in 2013 by the fund company Edelweiss Mutual Fund. The fund’s expense ratio is 0.44%, which is lower than the expense ratio charged by most other funds in the Dynamic Asset Allocation fund category.

Currently the fund is allocated to equities at 59.90% and debt at 20.90%. According to the official website of the fund company, the flat-rate returns of the Edelweiss Balanced Advantage Fund Direct-Growth for the previous year are 36.27%, and it has provided average annual returns of 13.85% since its inception. .

The fund is heavily exposed to stocks in the financials, technology, energy, consumer goods and automotive sectors. The fund’s top five holdings are ICICI Bank Ltd., Infosys Ltd., Reliance Industries Ltd – PPE, Bharti Airtel Ltd. and Nifty 50. The fund is rated 5 stars by Value Research, which reflects the past performance of the fund. in the bullish and bearish markets, but shouldn’t be your primary consideration when investing.

The fund’s net asset value (NAV) is Rs 39.45 as of October 12, 2021, and its assets under management (AUM) are Rs 5,845 Cr. The fund charges an exit charge of 1% if units greater than 10% of the investment are redeemed within one year from the date of purchase. SIP in this fund can be started with as little as Rs 500.

Scheme Benchmark System CRISIL Hybrid 50 + 50 – Moderate Index Additional benchmark NIFTY 50 – TRI
Period Return (TCCA) Return (TCCA) Return (TCCA)
1 year 36.27% 28.63% 52.63%
3 years 19.42% 17.10% 21.16%
5 years 14.88% 12.75% 17.02%
Since creation – Existing plan 13.85% 9.50% 14.56%

SIP Returns

Scheme Benchmark System CRISIL Hybrid 50 + 50 – Moderate Index Additional benchmark NIFTY 50 – TRI
Period Return (XIRR) Return (XIRR) Return (XIRR)
1 year 33.66% 19.99% 56.50%
3 years 25.17% 12.71% 31.21%
5 years 18.53% 10.18% 21.71%
Since creation – Existing plan 14.97% 9.86% 16.91%
Source: edelweissmf.com. Data as of October 12, 2021
Kotak Balanced Advantage Fund Direct - Growth

Kotak Balanced Advantage Fund Direct – Growth

Kotak Balanced Advantage Fund Direct-Growth is a mutual fund program launched by Kotak Mahindra Mutual Fund in 2018. The fund’s expense ratio is 0.46%, which is lower than the expense ratio of most others. funds of the same category. The fund now has an allocation of 34.0% to equities, an allocation of 39.10% to treasury instruments and an exposure of 26.90% to debt.

According to the fund company’s website, the Kotak Balanced Advantage Fund’s direct growth returns for the previous year were 23.60%, and it has provided average annual returns of 13.66% since its inception. The fund’s equity allocation is split between the financials, metals, technology, services and energy sectors. Kotak Liquid Plan A – Growth, GOI, ICICI Bank Ltd., Adani Ports and Special Economic Zone Ltd., Infosys Ltd. are the best performing positions of the fund.

Value Research gave the fund a 5-star rating, indicating a high performance rating. As of October 12, 2021, the net asset value (NAV) of the fund is Rs 15.06 and its assets under management (AUM) are Rs 11,035.94 Cr. If shares greater than 8% of the investment are redeemed within one year from the date of purchase, investors will have to pay an exit charge of 1%. An initial investment in this fund can be made with Rs 1000.

In SEBI format TCCA since inception 5 years 3 years 1 year
Kotak Balanced Advantage Fund – Direct (G) 13.66 0 15.59 23.6
Nifty 50 Hybrid Composite Debt 50:50 Index 13.98 12.82 16.47 26.88
Clever 50 TRI 16.83 17.05 21.18 52.63
Data as of October 12, 2021, Source: kotakmf.com
Union Direct Balanced Advantage Fund - Growth

Union Direct Balanced Advantage Fund – Growth

Union Balanced Advantage Fund Direct-Growth is a dynamic asset allocation mutual fund system that was introduced in 2017 and has performed well over the past three years. The fund’s expense ratio is 0.89% which is a bit higher than most other funds in the same category.

The fund now has a 30.10% allocation to equities, 51.0% exposure to cash derivatives and 18.90% exposure to debt. The Union Balanced Advantage fund’s direct growth returns over the past year are 21.42%, and it has generated average annual returns of 12.32% since its inception, according to the fund company’s website.

The main exposure to equities of the fund is spread among the financials, technology, energy, metals and health sectors. The fund’s top five holdings are GOI, HDFC Bank Ltd., ICICI Bank Ltd., Reliance Industries Ltd. and Infosys Ltd. The fund also received a 5-star rating from Value Research, indicating the fund’s historic success in generating returns under strong market fluctuations.

The fund’s net asset value (NAV) is Rs 15.53 as of October 12, 2021, and its assets under management (AUM) are Rs 1,448.39 Cr. If the units are redeemed within 15 days of the investment date, the fund imposes an exit charge of 15, and one can start the SIP in this product with a monthly contribution of Rs 1000.

3 best dynamic asset allocation funds in 2021

3 best dynamic asset allocation funds in 2021

Based on a 5-star rating from Value Research, low expense ratio and historical performance against their benchmarks, these are the top three dynamic asset allocation funds in 2021 to consider for a SIP .

Funds 1 month returns 6 months of returns 1 year of returns 3 years back 5 years back
Edelweiss Balanced Advantage Fund Direct-Growth 1.86% 18.04% 36.27% 19.42% 14.88%
Kotak Balanced Advantage Fund Direct-Growth 1.17% 11.50% 23.60% 15.58% 13.66% (since inception)
Union Balanced Advantage Fund Direct-Growth 1.37% 9.75% 21.42% 15.63% 12.32% (since inception)
Source: Groww
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