3 Top Rated Balanced Advantage Funds By Morning Star For SIP Investment
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1. Edelweiss Balanced Advantage Fund:
The fund has over 70 percent investment into Indian stocks and has over 20 percent investment into debt securities. In comparison to the Nifty benchmark, the fund over a 1-year period has outperformed with returns of 33 percent return.
The top stocks in its portfolio include ICICI Bank, HDFC Bank, Infosys, RIL, Bharti Airtel among others.
Notably, the scheme has been rated 5-star by Value Research also. Rs. 6 lakh worth of investment via the monthly SIP of Rs. 10000 in 5 years has grown in value to Rs. 9.43 lakh. SIP in the scheme can be started for Rs. 500.
2. Nippon India Balanced Advantage Fund Direct Plan
This fund has 65 percent exposure into equities and 25 percent into Debt. Over a 1-year period, the stock has underperformed the Nifty index with return to the tune of 28.5 percent versus Nifty returns of 32 percent.
The mutual fund’s top stock holdings include ICICI Bank, HDFC Bank, Infosys, RIL, HUL, SBI and ITC among others.
With Rs. 10000 per month SIP, the investment in 5 years time has grown to Rs. 8.55 lakh. SIP into the scheme can be started for as less as just Rs. 100.
3. Union Balanced Advantage Fund Direct Growth:
The fund’s 66 percent corpus is deployed into stocks while close to 20 percent is put into debt. The fund’s 1-year return has been at 18 percent. Top stock holdings of the fund include HDFC Bank, ICICI Bank, RIL, Infosys, TCS, HDFC, Bharti Airtel among others.
The mutual fund scheme is also ranked by Value Research Online as 4-star rated scheme. Minimum SIP amount is Rs. 2000.
In 3 years time, Rs. 10000 SIP on a per month basis i.e. Rs. 3.6 lakh has grown to Rs. 4.71 lakh.
| Balanced Advantage schemes | 1-Yr. SIP Annualised return | 3-Yr. SIP Annualised return | 5-Yr. SIP Annualised return |
|---|---|---|---|
| Edelweiss Balanced Advantage Fund | 27.41% | 24.62% | 18.39% |
| Nippon India Balanced Advantage Fund Direct Plan | |||
| 23.18% | 18.96% | 14.34% | |
| Union Balanced Advantage Fund Direct Growth (note here SIP returns are not given) | |||
| 18% | 15.57% |
Should you be investing in Balanced Advantage schemes?
The dynamic asset or balanced advantage scheme can be the best way out for those facing the tricky situation of redeeming funds at current market highs. Instead to resorting to such a take, investors shall be better off investing in balanced advantage schemes. The allocation herein to stocks is based on the market conditions i.e. exposure to stocks is increased when markets trend higher while it is cut down in an otherwise situation. So, with exposure to both debt and stocks, downside risk as well as volatility over the longer tenure is curtailed to just half.
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