Top Balanced Advantage Funds or Dynamic Asset Allocation Funds to Invest in March 2025

A large number of mutual fund advisors recommend balanced-advantage funds for new and inexperienced investors. The advisors consider these funds appropriate for the current market as they take care of it according to the conditions because of their dynamic portfolio. Advisors also suggest these funds to investors to invest their lumpsum amounts.

Balanced Advantage Funds invest in a combination of stock, debt and arbitrage opportunities. These funds increase their equity exposure when stocks are cheap and reduce it when markets are expensive. When the stocks are available at a favourable valuation, they invest more in equity. Simply put, these funds manage stock investments in place of investors, which makes them a smart choice for those investors who want a balanced approach.

Balanced Advantage Funds regulate equity exposure based on market conditions, but that does not mean that these funds are completely safe. Many mutual fund distributors claim that they are under the misperception that balanced advantage funds are safe investments. Therefore, don’t be influenced by such talks. Any mutual fund scheme that invests in stocks carries some risk. These funds cannot fully avoid market ups and downs, so investors are advised to invest only if they are comfortable with some risk and have a long-term investment horizon of at least 5 years.

Additionally, make sure that the fund is truly following its strategy. For example, some funds may continue to invest heavily in stocks even when the market is expensive, which goes against their purpose. So, before investing, check whether the fund is rebalancing its portfolio as pledged or not.

If you’re considering investing in balanced advantage funds, here are some top-recommended schemes.

Top Balanced Advantage Funds to Invest in March 2025

• Edelweiss Balanced Advantage Fund
• ICICI Prudential Balanced Advantage Fund
• Aditya Birla Sun Life Balanced Advantage Fund

These above-mentioned funds are best for investing in March 2025 in the advantage fund or dynamic allocation fund category. These funds will suit those investors who want to invest in the long run and create wealth by it.