HDFC Mutual Fund SIP Investment :If you want to become a millionaire for your future by investing small amounts regularly, then HDFC Balanced Advantage Fund can prove to be a great option. This hybrid fund has given good profits to investors by giving an annualized return of more than 19% over a period of 30 years. Let us know about the performance and investment strategy of this fund.
Past Performance of HDFC Balanced Advantage Fund
HDFC Balanced Advantage Fund is a hybrid fund that invests in equity and debt in a balanced manner. This fund has been giving an average annual return of 18.66% on lump sum investment since its launch. Being a hybrid fund, the asset allocation of this fund keeps changing depending on the market conditions, which gives investors maximum profit with low risk.
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How SIP in HDFC Balanced Advantage Fund made you a millionaire
This scheme of HDFC Mutual Fund has made even small investors into millionaires. You can see its two calculations here:
Calculation 1: Without lump sum investment
– Monthly SIP amount: Rs 800
– Investment period: 30 years
Total investment in 30 years: Rs 2.88 lakh
– Annualized return over 30 years: 19.47%
Current value of the fund after 30 years: Rs 1,12,53,528 (Rs 1.12 crore)
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Calculation 2: With lump sum investment
– Lumpsum investment: Rs 10,000
– Monthly SIP amount: Rs 1000
– Investment period: 30 years
Total investment in 30 years: Rs 3,70,000
– Annualized return over 30 years: 19.31%
– Current value of the fund after 30 years: Rs 1,56,04,570 (Rs 1.56 crore)
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Key features of HDFC Balanced Advantage Fund
Returns from launch till now: This fund has given an average annual return of 18.66% since its launch i.e. in the last 30 years and 7 months.
NAV:The NAV of this fund as on 17 September 2024 was Rs 511.3640.
Asset Under Management (AUM) : Rs 95,644.63 crore (by September 16, 2024)
Expense Ratio : 1.36%
Minimum Investment : Rs 100
Minimum SIP Investment : Rs 100
Risk level : “Very High”
Asset Allocation and Top Holdings
- Equity: 49.98%
- Debt: 29.3%
- Cash and cash-like assets: 19.26%
- Real estate: 1.45%
Companies included in top holdings
– HDFC Bank: 6.10%
– ICICI Bank : 3.58%
-SBI: 3.31%
-Coal India: 3.15%
-NTPC: 3.14%
-Infosys: 2.71%
HDFC Balanced Advantage Fundhead of theDebt holdings include major Government Securities (GOI Sec).
This scheme comes under the category of hybrid funds
Balanced Advantage Fund is actually a category of hybrid funds, which is also called dynamic asset allocation fund. These hybrid funds keep changing the ratio of investment in equity and debt depending on the market conditions. This means that when the market conditions are favorable, the fund increases investment in equity, and when the trend of equity market does not seem good, investment in debt is increased. Due to this flexibility, these funds have the potential for higher returns and also reduce the risk.
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Who should invest?
HDFC Balanced Advantage Fund has shown that regular investment of a small amount can make you a millionaire by giving excellent returns for 30 consecutive years. If you want to invest for the long term and want to protect yourself from market fluctuations, then investing in this fund through SIP can be a good option. This fund is especially suitable for those investors who want to get good returns by investing for a long time, i.e. at least 5 years or more. Since it is a dynamic asset allocation fund, the ratio of equity and debt keeps changing depending on the market situation. Investors in this fund should be prepared for market fluctuations, but due to the investment in debt, it has less risk than equity funds.
(Disclaimer: The purpose of this article is only to provide information, not to recommend investment in any scheme. Past returns of equity mutual funds cannot be considered as a guarantee of similar performance in future. Take any investment decision only after consulting your investment advisor.)
