“Best Balanced Mutual Funds 2025: 5 Top Picks Based on Rolling Return Data”

Balanced mutual funds, especially Balanced Advantage Funds (BAFs), have become a popular choice among investors in recent years. They offer a blend of equity and debt, giving exposure to growth while cushioning against volatility. This unique balance makes them suitable for both first-time and seasoned investors looking for stability along with long-term returns. In 2025, with market conditions constantly evolving, identifying funds that consistently perform well across cycles is crucial. One of the most reliable ways to measure consistency is through rolling returns. Let us explore the five best balanced mutual funds to invest in 2025 based on rolling return analysis.

What Are Rolling Returns in Mutual Funds?

When investors check point-to-point returns, the data can often be misleading as it depends heavily on market conditions at specific start and end dates. Rolling returns, on the other hand, provide a clearer and more consistent measure of performance.

For example, a 3-year rolling return evaluates a fund’s returns for every possible 3-year period within a given timeline. This helps investors see how the fund has performed across bull markets, bear phases, and sideways periods, rather than just at isolated points. In short, rolling returns showcase consistency and reliability of a fund’s performance, making them more useful for long-term decision making.

How We Shortlisted the Best Balanced Mutual Funds

To identify the top balanced mutual funds for 2025, a structured approach was followed:

• Data was analyzed for Balanced Advantage Funds from January 2013 to July 2025.
• Both 3-year and 5-year rolling returns were considered.
• Consistency of returns was given more importance than just one-time highs.
• Funds with lower downside risks and fewer negative periods were prioritized.
• Long-term track record along with short-term stability was factored in.

Based on this analysis, the following five funds emerged as strong candidates.

Top 5 Balanced Mutual Funds to Invest in 2025

1) HDFC Balanced Advantage Fund

• 3-Year Rolling Return: 22.95%
• 5-Year Rolling Return: 25.15%
• 10-Year Return: 14.74%

Why it stands out: This fund has consistently ranked among the top performers in the balanced advantage category. Its strong short-term and medium-term rolling returns highlight its ability to deliver growth while managing risk effectively. With dynamic allocation strategies, it remains one of the most reliable picks for investors in 2025.

2) Franklin India Dynamic Asset Allocation Active FoF

• 3-Year Rolling Return: 16.83%
• 5-Year Rolling Return: 20.19%
• 10-Year Return: 11.25%

Why it stands out: Franklin’s balanced fund has shown strength in longer rolling periods with a well-diversified allocation. Its focus on dynamic rebalancing between equity and debt makes it an appealing option for investors looking for stability along with healthy growth potential.

3) Invesco India Balanced Advantage Fund

• 3-Year Rolling Return: 17.28%
• 5-Year Rolling Return: 14.48%
• 10-Year Return: 10.54%

Why it stands out: This fund strikes a balance between delivering competitive returns and protecting downside risks. While not the highest performer in terms of absolute numbers, its stability across different market conditions makes it a dependable option for moderate-risk investors.

4) Aditya Birla Sun Life Balanced Advantage Fund

• 3-Year Rolling Return: 16.36%
• 5-Year Rolling Return: 15.98%
• 10-Year Return: 11.98%

Why it stands out: This fund has steadily delivered consistent annualised returns. It has a reputation for stability and has performed well across multiple cycles. With its disciplined allocation approach, it remains a trusted choice for long-term investors.

5) Edelweiss Balanced Advantage Fund

• 3-Year Rolling Return: 15.71%
• 5-Year Rolling Return: 16.30%
• 10-Year Return: 11.40%

Why it stands out: Edelweiss has built a reputation for offering steadily growing performance in this category. While not the most aggressive performer, its consistency and balanced approach make it a safe option for investors who prefer gradual wealth creation with controlled volatility.

Annualised Returns Comparison – Top 5 Funds

Fund Name	3-Year Return (%)	5-Year Return (%)	10-Year Return (%)
HDFC Balanced Advantage Fund	22.95	25.15	14.74
Franklin India Dynamic Asset Allocation FoF	16.83	20.19	11.25
Invesco India Balanced Advantage Fund	17.28	14.48	10.54
Aditya Birla Sun Life Balanced Advantage Fund	16.36	15.98	11.98
Edelweiss Balanced Advantage Fund	15.71	16.30	11.40

Benefits of Investing in Balanced Mutual Funds

• Diversification: A mix of equity and debt reduces portfolio concentration risk.
• Lower Volatility: Balanced allocation helps smoothen returns across cycles.
• Dynamic Rebalancing: Fund managers actively adjust allocation to suit market conditions.
• Tax Efficiency: Long-term gains can be more tax-friendly compared to pure debt investments.
• Suitable for Medium Horizon: These funds work best with an investment horizon of 3 to 5 years.

Risks to Keep in Mind

• Market Risk: Equity allocation remains exposed to stock market swings.
• Allocation Risk: Wrong timing in equity-debt balancing can impact performance.
• Manager Dependence: Fund manager’s strategy and decisions play a critical role.
• Not for Short Term: These funds are better suited for medium to long-term investors, not short-term traders.

Conclusion

Balanced mutual funds, particularly Balanced Advantage Funds, are an excellent choice for investors seeking a mix of growth and stability. The five funds discussed—HDFC Balanced Advantage Fund, Franklin India Dynamic Asset Allocation FoF, Invesco India Balanced Advantage Fund, Aditya Birla Sun Life Balanced Advantage Fund, and Edelweiss Balanced Advantage Fund—have consistently demonstrated strong rolling returns, making them solid contenders for 2025.

While these funds offer diversification and reduced volatility, it is important for investors to align their choices with their financial goals and risk appetite. Balanced funds work best for those with a medium to long-term investment horizon who want steady growth without taking excessive risks.