Best Mutual Funds: These 6 dynamic asset allocation funds gave over 12% annualised return in past 3 years | Mint

Before you start investing in a mutual fund scheme, it is quite normal to look at its past returns. This gives a fair idea of how the mutual fund scheme has performed and what growth trajectory it may take in the time to come.

Although historical returns do not guarantee a scheme’s future performance, they are still considered as one of the key factors to consider before somone invests their money.

Here, we list out the dynamic asset allocation funds which have delivered over 11-12 percent CAGR (compound annual growth rate) returns in the past three years.

What are dynamic asset allocation funds?

Those who are not aware – dynamic asset allocation funds refer to the schemes which invest in equity & debt that is managed dynamically i.e., 0 to 100 per cent in equity and equity-related instruments; and 0 to 100 per cent in debt instruments.

There are 34 schemes in this category with net AUM of ₹2.82 lakh crore out of which ₹1,512 crore inflow was added in January itself, reveals the latest AMFI data.

(Source: AMFI; regular returns as on Feb 14)

As one can see in the table above, HDFC Balanced Advantage Fund gave 19.42 percent annualised return in the past three years. This was followed by SBI Balanced Advantage Fund which gave 12.53 percent return in the past three years.

Based on the assets under management (AUM), HDFC Balanced Advantage Fund is the largest fund with AUM of ₹92,084 crore followed by SBI Balanced Advantage Fund.

However, it is noteworthy to mention here that the past returns do not guarantee a scheme’s future returns.

In other words, just because a scheme has given an annualised return of 19 percent, it does not mean it will continue to give the same performance in future as well.

Note: This story is for informational purposes only. Please speak to a SEBI-registered investment advisor before making any investment related decision