Here’s Why Investors Must Go For Dynamic Asset Allocation Schemes

Dynamic Asset Allocation Schemes

Many investors, especially beginners, often do not have either the right knowledge or an advisor for investment portfolio.

That’s the reason why at times, they suffer losses when the market crashes down and end up telling people that it is risky.

Well, what they don’t know is that there is an ideal investment solution,  dynamic asset allocation Mutual Funds. These types of funds can help investors to get returns in both falling and rising markets.

This scheme is great for both novice and seasoned investors alike.

Read on to know more about this.

What are dynamic asset allocation funds?

These schemes automatically adjust their equity-debt allocation according to market situations.

Basically, it is a strategy that allows low to buy stocks when the prices are low, and sell equity when the prices are high.

It also aids in the advancement of investments in equity markets while providing safety through investments in debt instruments.

The aim is to reduce the fluctuation risks and achieve returns that exceed what the target was.

Who can opt for it?

–       This type of fund is ideal for first-time investors with low to moderate risk profile.

–       This type of fund is suggested for those who are looking for low to medium risk with an investment period of 4-5 years.

–       And for those who aim for wealth creation over a long term period.

ICICI Prudential Balanced Advantage Fund – Know more about one of the top performing balanced funds

ICICI Prudential Balanced Advantage Fund is one such fund that you can rely on if you are looking out to invest in dynamic asset allocation funds.

ICICI Prudential Balanced Advantage is an equity-oriented balanced fund. It looks to hold no less than 65% in equities and the balance in debt securities like most other balanced funds.

Basically, the fund utilises derivative hedging strategies in its equity holding. As a consequence of utilising dynamic hedging techniques, it is less risky than regular balanced funds in volatile business sectors.

The fund is reasonable for investors who are searching for returns higher than debt-oriented funds, (for example, Monthly Income Plans – MIPs), and wish to take lesser risks than balanced equity funds.

Benefits of ICICI Prudential Balanced Advantage Fund

–       One can also get tax benefits from this scheme. This type of fund aims to provide you month-on-month tax-free dividends.

–       It will help you save money and lead to capital appreciation at the same time without landing into major losses.

–       One can also get benefits from an in-house asset allocation model that targets to buy low & sell high.

Want to know more about asset allocation fund? Click here.

Note: Mutual Fund investments are subject to market risks, read all scheme related documents carefully.


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