Dynamic asset allocation or balanced advantage funds in India

38 live funds in the Dynamic Asset Allocation or Balanced Advantage category, ordered by 5-year return, highest first; HDFC Balanced Advantage Fund leads. Funds younger than five years follow by name. Returns are for the plan each fund's page leads with, Direct where the fund has one, to each fund's latest NAV, the newest of them on 28 Oct 2026; 3 and 5 year returns are a year, compounded.

Category median, 1 year
−2.52%Middle of 36 funds
Category median, 3 years
+9.14%Middle of 30 funds
Category median, 5 years
+8.08%Middle of 22 funds

Dynamic Asset Allocation or Balanced Advantage funds

Size is the average money the fund managed over its latest quarter. Cost is its yearly expense ratio.Filter them in the screener

NAV of 28 Oct 2026

Tax on dynamic asset allocation or balanced advantage funds

Tax depends on the fund's own mix. With 65% or more in shares of listed Indian companies, gains on units held over 12 months are taxed at 12.5% above ₹1.25 lakh a year, and gains on units held 12 months or less at 20%; with more than 65% in debt and money market instruments, gains on units bought on or after 1 Apr 2023 are taxed at the income tax slab rate however long they are held, and on units bought earlier at 12.5% after 24 months; otherwise, gains on units held over 24 months are taxed at 12.5%, and gains on units held 24 months or less at the income tax slab rate.

Rules in force from 1 Apr 2025, checked 27 Oct 2026. Surcharge and cess are not included.

About dynamic asset allocation or balanced advantage funds in India

Dynamic asset allocation or balanced advantage funds in India are hybrid mutual funds that move money between shares and bonds as their managers see fit. SEBI places them in the hybrid group and sets no minimum or maximum for either asset.

What SEBI requires

SEBI's category rule says only that the fund invests in equity and debt, managed dynamically. It sets no band, unlike the aggressive hybrid category (65% to 80% in equity) or the balanced hybrid category (40% to 60% in equity). A revised classification framework issued on 26 Feb 2026 keeps the category in the hybrid group and limits it to equity and debt instruments. The two names, dynamic asset allocation and balanced advantage, describe the same category.

How the funds are run

Each fund follows its own model. Many raise the share of debt when share valuations, measured by ratios such as price to earnings or price to book, are high, and raise equity when they are low. Others use momentum or other signals. Because SEBI sets no band, two funds in the category can hold very different equity levels at the same time.

Net equity and hedging

Many of these funds hold shares and sell futures against part of them. The hedged part is called arbitrage: it earns a small spread and no longer moves with the market. Gross equity is the total share holding. Net equity is gross equity minus the hedged part, and it is the figure that shows how exposed the fund is to a fall in share prices. A fund's gross equity is often kept at 65% or more, which matters for tax.

Tax treatment

The tax law treats a fund that invests at least 65% in Indian shares as an equity-oriented fund. Gains on units sold within 12 months are taxed at 20%. Gains on units held longer are taxed at 12.5% above ₹1.25 lakh of long-term equity gains in a year. The 65% is an average over the year, and hedged shares count toward it. A fund below the line is taxed differently, so the rate depends on the fund's holdings, not on its category name.

What this page shows

The page lists every live fund in the category, ordered by 5-year return, highest first. Each return is for the fund's Direct plan (the plan with no distributor commission) where it has one, run to the fund's latest NAV. The 3-year and 5-year figures are compounded yearly. Funds younger than five years follow, sorted by name, with a dash in the 5-year column. Size is the average money the fund managed over its latest quarter, and cost is its yearly expense ratio. The category medians for 1, 3 and 5 years are taken across the Direct plans of the funds that have a return for that window.