Edelweiss Balanced Advantage Fund: Smart Investing with Less Risk in 2025
Are you searching for a mutual fund that balances growth and risk? Meet the Edelweiss Balanced Advantage Fund. This hybrid fund—also known as a dynamic asset allocation fund—is built to adapt to market ups and downs by shifting between equity, debt, and arbitrage strategies. In this article, we’ll dive deep into why the Edelweiss Balanced Advantage Fund could be a smart choice in 2025. We’ll explain its returns, risk, holdings, and how it works—all in simple English you can easily understand.
What Is the Edelweiss Balanced Advantage Fund?
The Edelweiss Balanced Advantage Fund is a dynamic hybrid fund launched in August 2009 . Its goal is to deliver capital appreciation while managing volatility. The fund invests dynamically—sometimes in equities, other times in debt and arbitrage—based on market conditions .
This flexibility makes the Edelweiss Balanced Advantage Fund ideal for investors who want equity growth but want to avoid wild swings in returns. Let’s explore its performance and core features in detail.
Fund Size (Assets Under Management)
As of June 30, 2025, the Edelweiss Balanced Advantage Fund has an AUM of approximately ₹13,047 crore in its Regular-IDCW Monthly plan (Regular Growth Plan shows around ₹12,696 crore) .
A high AUM suggests that many investors trust this fund and it has solid fund-house support. Still, the fund stays flexible and nimble despite its size.
Historical Returns
Here are the key historical returns of the Edelweiss Balanced Advantage Fund:
- 1-Year Return: around 2.45% to 3.32%
- 3-Year Annualised Return: ≈ 14.35%
- 5-Year Annualised Return: ≈ 15.14%–15.02%
- Since Inception (2009): ~10.7%–10.8% CAGR
These steady returns reflect the fund’s strategy of switching between asset classes to balance growth and safety.
Risk Metrics: Standard Deviation, Sharpe, Alpha
- Standard Deviation: ~8.31%–8.34%
- Sharpe Ratio: about 0.96–1.08
- Alpha: near 0.23–0.45
A standard deviation ~8% shows lower volatility compared to pure equity funds. A Sharpe ratio close to 1 means investors are getting good risk-adjusted returns. The positive alpha indicates fund managers are adding value .
Expense Ratio and Exit Load
- Expense Ratio (Regular Plan): around 1.68%
- Exit Load: 1% on redemption of units exceeding 10% of investment if redeemed within 90 days .
While the expense ratio is slightly high, it’s justified by the active asset allocation strategy and steady returns. Stay invested for at least 1 year to avoid exit load.
Sector Allocation (Top 3 Sectors)
As of June–July 2025, the Edelweiss Balanced Advantage Fund primarily invests in:
- Financial Services (~22–26%)
- Technology / Software & Programming (~6–8%)
- Biotechnology & Drugs / Consumer Financial Services (~5–7%)
Alongside other sectors like Energy, Industrials, and Communications .
Top 5 Stock Holdings
Top holdings (approximate % of AUM) include:
- HDFC Bank (~5.3–5.5%)
- ICICI Bank (~4.7–5.0%)
- Reliance Industries (~4.5–4.9%)
- Clearing Corporation of India (~2.5%)
- Bharti Airtel / Infosys / Bajaj Finance / L&T / SBI (around 2–2.5% each)
Overall, the top 10 stocks are about 30% of the fund .
Investment Objective & Strategy
The Edelweiss Balanced Advantage Fund aims to generate capital appreciation over time while reducing volatility . It invests dynamically across equities, debt, arbitrage, and sometimes REITs/InvITs . In falling markets, the equity portion is reduced; in rising markets, equity exposure increases.
Why Choose the Edelweiss Balanced Advantage Fund in 2025?
1. Equilibrium Between Growth and Safety
By dynamically allocating between equity and debt, this fund aims to limit downside while capturing upside. It’s perfect for investors who want moderate returns with lower risk.
2. History of Good Returns
With 5-year returns around 15% and since inception CAGR of ~10.7%, the fund has shown resilient performance over different market cycles.
3. Well-Known Large-Cap Exposure
Top holdings in quality large-cap names (HDFC Bank, Reliance, ICICI Bank, etc.) provide stability .
4. Manageable Volatility
Standard deviation near 8% is much lower than pure equity (~20–25%), making the ride smoother .
5. Professional Management
Fund-managed by experienced professionals who adjust asset mix based on market conditions.
How the Fund Performed Over Time
- In bull markets, the fund increases equity exposure to ride growth.
- In bear markets, it reallocates to debt and arbitrage to reduce losses.
Returns have been relatively stable:
3-Year annualised return: ~14.35%
5-Year annualised return: ~15.14%
1-Year return: ~2–3%, lower than peers but reflecting caution in volatile markets (The Economic Times).
Ideal Investor Profile
The Edelweiss Balanced Advantage Fund suits:
- Moderate-risk investors seeking equity growth with stability
- Those wanting a self-adjusting fund without manual rebalancing
- Investors aiming for long-term investment (3+ years)
- People wanting a single fund solution for balanced exposure
Comparisons with Peers
Compared to funds like HDFC Balanced Advantage and ICICI Balanced Advantage:
- AUM: ₹13k crore vs. ₹100k crore for HDFC fund
- Expense ratio: 1.68% vs. 1.35% (HDFC)
- Standard deviation: 8.3% vs 9.4% (HDFC)
- Sharpe ratio: 0.96 vs 1.60 (HDFC)
- 5-Year return: ~15.0% vs 25% for HDFC’s aggressive strategy; but the latter’s risk is higher .
Summary Table
| Parameter | Edelweiss Balanced Advantage Fund |
|---|---|
| AUM | ₹12,700–13,100 Cr |
| 1-Year Return | ~2.45–3.32% |
| 3-Year Return | ~14.35% |
| 5-Year Return | ~15.14% |
| Standard Deviation | ~8.31–8.34% |
| Sharpe Ratio | ~0.96–1.08 |
| Alpha | ~0.23–0.45 |
| Expense Ratio (Regular) | 1.68% |
| Exit Load | 1% if redeemed <90 days & >10% units |
| Top 3 Sectors | Financial, Tech, Biotech/Consumer Fin |
| Top 5 Stocks | HDFC Bank, ICICI Bank, Reliance, Clearing Corp, Airtel/Infosys |
Final Verdict
The Edelweiss Balanced Advantage Fund offers a good blend of growth and stability. It may not be the fastest-growing hybrid, but its steady returns, dynamic allocation approach, and lower volatility make it a strong contender for investors seeking moderate risk.
If you’re ready to invest in 2025, this fund can serve as a core holding in your portfolio—especially if you prefer automatic risk management along with market upside.
📢 Professional Disclosure
This article is for informational and educational purposes only. The performance and data related to the Edelweiss Balanced Advantage Fund are based on historical figures and are not a guarantee of future returns. Mutual fund investments carry inherent risks, and investors should consult a SEBI-registered financial advisor before making any investment decisions. Past returns do not ensure future performance.
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