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How will Bal Adv Funds and Dynamic Asset Allocation Funds be taxed after Budget 2024?


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.

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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