Mutual Funds: 10 dynamic asset allocation funds beat the benchmark index in the past three years

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mutual fund scheme, they weigh a number of factors ranging from the historical returns to the fund house’s reputation, and overall market scenario to the future outlook. One of the key considerations that investors invariably factor in is the performance of the mutual fund scheme in the recent past.

Here, we discuss some schemes of a mutual fund category — dynamic asset allocation — which have given good returns, i.e., better than that of their corresponding benchmark index. ALSO READ: A monthly SIP of ₹10K in this mutual fund since 2008 would have grown to ₹90 lakh A benchmark index is a standard against which a mutual fund scheme’s performance is measured.

Beating the benchmark index is an indication of the scheme's good performance. At the outset, let us understand what exactly are dynamic asset allocation funds These mutual funds, also known as balanced advantage funds, refer to investment instruments, which invest in equity/ debt instruments that are managed dynamically (0 to 100 percent in equity & equity-related instruments) and similar proportion in debt instruments at the same time, as per the Sebi’s categorisation of mutual fund schemes.

These are some of the top-performing dynamic asset allocation funds, which have managed to beat the benchmark index. ALSO READ: Hybrid mutual funds: Why should you opt for the blend of equity and debt? As we can see in the table below, the top-performing scheme (HDFC Balanced Advantage Fund) delivered an annualised return of 25.90 percent in the past three years.

The distant second in terms of 3-year returns is Bank of India Balanced Advantage Fund which gave a CAGR return of 15.12 percent. This is followed by Baroda BNP Paribas Balanced Advantage Fund which gave a return of