HDFC Mutual Fund Category Topper Scheme:HDFC Balanced Advantage Fund has consistently given excellent returns to its investors. This hybrid scheme of HDFC Mutual Fund has given the highest returns in its category during the last 3 years, 5 years and 10 years period, which reflects its successful investment strategy. Due to this excellent performance, this scheme has gained the trust of investors, due to which its Asset Under Management (AUM) had crossed Rs 94 thousand crore on November 22. Let us know what are the features of this scheme and for which investors it may be right to invest in it.
What is special in HDFC Balanced Advantage Fund?
HDFC Balanced Advantage Fund is an open-ended balanced advantage fund. This is a hybrid mutual fund scheme, which has given higher returns than all the other schemes falling in the category of Balanced Advantage or Dynamic Asset Allocation Fund. The objective of this scheme is to achieve long-term capital appreciation through a mix of equity and debt investments. Being a balanced advantage fund, the decision to invest in equity and debt of this scheme completely depends on the fund manager. The fund manager can invest the entire fund anywhere from equity to debt. That means, both equity and debt allocation of this fund can range from 100 percent to 0 percent.
-
category: Hybrid (Balanced Advantage/Dynamic Asset Allocation Fund).
-
benchmark: NIFTY 50 Hybrid Composite debt 50:50 Index
-
Asset Under Management (AUM): Rs 94,108.32 crore (by 22 November 2024).
-
riskometer:High
-
expense ratio,
Also read: How to Buy Insurance: Do not become a victim of misunderstanding while taking an insurance policy, beware of tempting promises.
A look at the past returns of the scheme
HDFC Balanced Advantage Fund has outperformed not only its benchmark but also all other schemes in the category over different periods.
|
time period |
Direct Plan Returns |
Regular Plan Returns |
benchmark returns |
|
3 year |
22.13% |
21.36% |
9.40% |
|
5 years |
20.61% |
19.86% |
12.10% |
|
10 years |
14.33% |
13.45% |
10.38% |
Investment Strategy of the Scheme
HDFC Balanced Advantage Fund dynamically allocates its assets between equity and debt.
-
equity allocation: 65-100%.
-
debt allocation: 0-35%.
-
Current Allocation (31 October 2024),
-
Fund managers determine asset allocation based on market conditions, equity valuations, and a medium to long term perspective.
Also read: Investing for Best Return: How to make the right portfolio for best returns, what is right between equity and debt? Things will be resolved with these 5 tips
Top 5 Equity Holdings
The current top 10 equity holdings of HDFC Balanced Advantage Fund are as follows:
Also read: Mutual Funds: Due to market turmoil, the returns of many mutual funds have deteriorated, what should investors do?
Benefits of investing in this scheme
1. Great Returns
This fund has given better returns than its benchmark over 3, 5 and 10 years, making it a category topper.
2. Dynamic Asset Allocation
This fund keeps changing its allocation between equity and debt depending on the market conditions, due to which the investor gets the benefit of both.
3. Balance of risk and reward
Despite the high risk, this fund can be a good option for long-term investors.
4. Expense ratio and exit load
-
The expense ratio is lower in the direct plan, which can lead to better net returns.
-
1% exit load is applicable for exit within 1 year.
Also read: Parliament Winter Session: These important economic bills may come in the current session of Parliament, what will be the impact on your investment and savings?
Should you invest in it?
HDFC Balanced Advantage Fund is a better option for investors who:
-
Want to invest for the long term.
-
Want a balance of equity and debt.
-
Want to benefit from a dynamic asset allocation strategy.
However, before taking any investment decision, you must evaluate your financial needs and risk appetite.
(Disclaimer: The purpose of this article is only to provide information and not to give advice on investing in any scheme. Take investment related decisions only after taking the advice of your investment advisor.)
