Parag Parikh Dynamic Asset Allocation Fund - Regular Plan - Monthly IDCW Reinvestment

Parag Parikh Dynamic Asset Allocation Fund - Regular Plan - Monthly IDCW Reinvestment ranks among the stronger performers in the Dynamic Asset Allocation category, backed by a 5-star rating. TopFund's composite Health Score, which weighs rating, 3-year CAGR, expense ratio and fund size, puts it at 94/100.

Cost: At 0.41%, the expense ratio is meaningfully cheaper — about 58% below the Dynamic Asset Allocation category average of 0.97% (based on 134 comparable funds). Lower costs compound in your favour over long holding periods.

Risk-adjusted performance: Over the trailing 1-year period, the fund shows a negative Sharpe ratio of -2.43 — over the past year, returns haven't kept pace with the volatility involved, even before accounting for the risk-free rate. Separately, annualised volatility of 3.8% is on the lower side, suggesting a comparatively smoother ride.

Who should invest: This fund is best suited to investors whose goals and risk appetite align with a Hybrid fund. The High risk rating means near-term volatility should be expected — this isn't a fund to check daily.