Best Mutual Funds: These balanced advantage funds managed to beat the benchmark index in the past 5 years

Prior to investing in a mutual fund scheme, it is worthwhile to examine the paste returns of that scheme in relation to other schemes in the same category. Although past returns do not a scheme’s future returns, these are still important for understanding the future investment potential of a scheme.

Other factors which investors are recommended to consider before opting for a mutual fund scheme include fund house’s reputation, category of the scheme, overall macro economic situation, among others. 

Here we list out the mutual fund schemes which have managed to beat the benchmark index in the past five years.

What are balanced advantage funds?

In balanced advantage funds, investment in equity and debt is managed dynamically (0 to 100 percent in equity; and 0 to 100 percent in debt).

They fall under the category of hybrid mutual funds, and are also known as dynamic asset allocation funds.

(Source: AMFI, returns as on Nov 29)

As we can see in the table above, five mutual fund schemes managed to beat the benchmark index (NIFTY 50 Hybrid Composite debt 50:50 Index) which gave a return of 12.06 percent.

Baroda BNP Paribas Balanced Advantage Fund gave an annualised return of 16.23 percent per annum, higher than the benchmark index of 12,06 percent. Edelweiss Balanced Advantage Fund, meanwhile, delivered an annualised return of 14.89 percent against 12.06 percent benchmark return.

HDFC Balanced Advantage Fund gave a return of 20.05 percent which was the highest CAGR return in the past five years. Other schemes which managed to beat the benchmark index return are Kotak Balanced Advantage Fund and Sundaram Balanced Advantage Fund.

When seen from the lens of fund’s size, largest balanced advantage funds include HDFC Balanced Advantage Fund (AUM of ₹95,546.42 crore) and Kotak Balanced Advantage Fund (AUM of ₹16,957.36 crore).

It is noteworthy that historical returns do not guarantee a scheme’s future returns. In other words, just because a scheme has performed exceedingly well in the past does not necessarily mean that it will replicate 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.)