Dynamic Asset Allocation

Asset Allocation aims to create a mix of assets in order to provide an optimal balance between expected risk and return keeping in mind a long-term investment horizon. It divides investments in to various investment options trying to get maximum returns with minimum risks. A portfolio created for this purpose is diversified, keeping in mind risk tolerance, investment objective and time horizon. This paper tries to study different asset allocation models used for different investment objectives and need for rebalancing the portfolio from time to time. An example of ICICI Prudential Balanced Advantage Fund has been taken to study the impact of Dynamic Asset allocation on the long term performance of a mutual fund.