Hybrid: Dynamic Asset Allocation

What is it?

Dynamic asset allocation funds invest in both equity and debt. There are no restrictions on the minimum amount to be invested in any particular asset class.

Objective

The objective of the dynamic asset allocation fund is to generate decent returns by changing asset allocation in different market conditions. They aim for long-term wealth creation by investing dynamically in equity and debt.

Suitability and opinion

Balanced advantage funds are suitable for investors with moderate risk appetites. These funds can be a suitable option for long-term investors aiming to build wealth using a diversified portfolio. These funds do not have fixed allocation limits in equity and debt. The manager can change the allocation as per the market outlook. This makes them suitable for conservative equity investors and first-time equity investors as these funds have lower volatility compared to pure equity funds and higher returns compared to pure debt funds. We believe that conservative equity investors can consider this category with an ideal time horizon of 5 to 7 years.