This article discusses how Balanced Advantage Funds and Dynamic Asset Allocation Funds will be taxed after the 2024 Budget.
Dynamic Asset Allocation or Balanced Advantage Fund can invest in equity/ debt that is managed (0% to 100% in equity & equity related instruments; and dynamically
0% to 100% in Debt instruments).
So they could be taxed like equity funds, debt funds or other funds depending on whether they hold 65% or more stocks, 65% or more bonds or neither. See Budget 2024 Capital Gains Taxation Guide.
Their taxation status could also change over time! Investors should then check the last 12 months’ average equity or fixed-income holding from the redemption date. The most authoritative source for taxing each multi-asset fund is their respective AMCs.
We urge the reader to find out taxation information from their respective AMCs. We have compiled the last 12 months (or since inception) average equity exposure of all Balanced Advantage Funds and Dynamic Asset Allocation funds to provide an indication. The expected tax status is also indicated.
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Dynamic Asset Allocation Funds
| Scheme Name | Avg | Possible Tax Status |
| Quant Dynamic Asset Allocation Fund-Reg(G) | 71.2395 | Equity |
| DSP Dynamic Asset Allocation Fund-Reg(G) | 66.1523 | Equity |
| Samco Dynamic Asset Allocation Fund-Reg(G) | 53.3967 | Other MF |
| Parag Parikh Dynamic Asset Allocation Fund-Reg(G) | 38.8497 | Other MF |
| UTI ULIP(G) | 38.4525 | Other MF |
Balanced Advantage Funds
All Balanced Advantage funds are likely to be taxed like equity (since the last 12 months or since inception equity holding average is greater than 65%)
| Scheme Name | Avg |
| Helios Balanced Advantage Fund-Reg(G) | 84.5676 |
| NJ Balanced Advantage Fund-Reg(G) | 83.6640 |
| Motilal Oswal Balanced Advantage Fund-Reg(G) | 78.1318 |
| Edelweiss Balanced Advantage Fund-Reg(G) | 76.8541 |
| Bank of India Balanced Advantage Fund-Reg(G) | 76.4398 |
| Bajaj Finserv Balanced Advantage Fund-Reg(G) | 76.4382 |
| Bandhan Balanced Advantage Fund-Reg(G) | 73.4680 |
| Sundaram Balanced Advantage Fund(G) | 71.6945 |
| LIC MF Balanced Advantage Fund-Reg(G) | 70.8586 |
| Kotak Balanced Advantage Fund-Reg(G) | 70.6431 |
| PGIM India Balanced Advantage Fund-Reg(G) | 70.4240 |
| Axis Balanced Advantage Fund-Reg(G) | 70.1832 |
| Union Balanced Advantage Fund-Reg(G) | 68.0730 |
| Nippon India Balanced Advantage Fund(G) | 67.8382 |
| Aditya Birla SL Balanced Advantage Fund(G) | 67.6587 |
| HSBC Balanced Advantage Fund-Reg(G) | 67.5744 |
| Mahindra Manulife Balanced Advantage Fund-Reg(G) | 67.4953 |
| SBI Balanced Advantage Fund-Reg(G) | 67.4269 |
| WOC Balanced Advantage Fund-Reg(G) | 67.3003 |
| HDFC Balanced Advantage Fund(G) | 67.1029 |
| ICICI Pru Balanced Advantage Fund(G) | 67.0267 |
| Baroda BNP Paribas Balanced Advantage Fund-Reg(G) | 67.0147 |
| Mirae Asset Balanced Advantage Fund-Reg(G) | 66.6927 |
| Shriram Balanced Advantage Fund-Reg(G) | 66.2143 |
| UTI Balanced Advantage Fund-Reg(G) | 66.2021 |
| Tata Balanced Adv Fund-Reg(G) | 66.1683 |
| Invesco India Balanced Advantage Fund(G) | 65.7799 |
| Franklin India Balanced Advantage Fund-Reg(G) | 65.6564 |
| ITI Balanced Advantage Fund-Reg(G) | 65.1122 |
We reiterate that these observations are based on the average equity exposure for the last 12 months or since its inception. Please check with the AMC to confirm the tax status.
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