Dynamic Asset Allocation Funds is one of the best investment instruments which invests in different sectors like equity funds, real estate, bonds, stokeslet. This is a type of balanced funds or the hybrid funds. Investors looks for the equity funds to park their money because in the expectations of higher returns, but investor must remember that equity has higher risks too. But when it comes for an investment to invest in uncertain money market Dynamic asset Allocation Funds are the best option as it offers wide investment choices, so one could choose any better or suitable option according to their investment portfolio. Though there are many investment options, what makes dynamic funding special, well the option of liquidity and variety of investment options make it unique and special, whenever the there is a risk the investor can have easy liquidity to shuffle to other suitable investment option. When we talk about the balanced funds under the dynamic funding is suitable for those who wants to go for minimum investment and who expect for assured returns. Most significantly taxation benefits are higher than the other mutual funds, as the long-term capital gain tax are indexed but in dynamic funding the tax is calculated for after the 3 years of the procurement.
Factors to be considered before investing in Dynamic Funding:
Analyze the risks associated with different funds and go for the safer option.
Diversified investment Options:
As the dynamic funding offers many investment options like equity, stocks, bonds, etc. During the market crisis shuffle to the reasonable or suitable option to park your money.
As there are different options, the returns offered by different schemes will also be different, for instance the returns are higher for the equity funds, but the risk is also higher at the same time. In case of balanced funds, the investor can receive assured returns and risk is also lower, so before going for investment plan according to your portfolio.
Advantages of Dynamic Funding:
- Higher returns
- Tax Benefits
- Diversification of assets
- Pull control over any market volatility.
List of Top Dynamic Funding Houses in India:
- Union Balanced Advantage Fund offers 11.78% returns for 3 years.
- Edelweiss Balanced Advantage Fund provides 10.95% returns.
- ICICI Prudential Balanced Advantage Fund offers 8.95% returns for 3 years.
- Aditya Birla Sun Life Balanced Advantage Fund for 3 years offers 8.78% of returns.
- IDFC Dynamic Equity Fund offers 8.33% returns for 3 years.