HDFC Balanced Advantage Fund

HDFC Balanced Advantage Fund is an open-ended balanced fund that invests in the equity market and equity-related securities. Besides, the fund also invests some portion of the portfolio in debt securities and government bonds for risk mitigation. Investment in the equity market helps investors to generate income on their investment. The fund manager has complete autonomy over the investment decisions. They can invest any amount as per the current market conditions or their risk-taking capacities.

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Types of HDFC Balanced Advantage Fund

It has two types of plans:

  • Direct plan: Investors invest their money directly with the fund house and without consulting any distributor. The absence of the distributor lowers the expense ratio for the direct plan.

  • Regular plan: Investors route their investment in the fund through a distributor. 

Under both plans, you can avail yourself of either a growth plan or an Income Distribution cum Capital Withdrawal (IDCW) plan. 

Under the IDCW plan, the fund house declares dividends after every predetermined interval. Once dividends are declared, investors can withdraw the money or choose to reinvest it in the fund. 

Under the growth plan, the dividends are automatically reinvested in the fund, resulting in compounded returns over the years.

HDFC Balanced Advantage Fund Facts

Scheme Type

Open-ended balanced advantage fund

Allotment Date

1st February 1994

Benchmark


NIFTY 50 Hybrid Composite Debt 65:35

Risk Level

Very high 

Entry Load

Nil

Exit Load

  • 1% exit load: If you sell, redeem, or switch units within one year of the date of allotment. 

  • No exit load: If you sell, redeem, or switch units after one year of the date of fund allotment. 

  • In the case of bonus units, no exit load will be levied on the investors. 

Lock-in period

NA

AUM

Rs. 42,776 Crore as of 31st October, 2021

Expense ratio

Regular: 1.63%

Direct: 1.02%

Fund Manager

Mr Prashant Jain, since 1st January 2002

and Mr Sankalp Baid, since 22nd January 2021 as a credit analyst.

Standard Deviation

20.19

Trustee Company

HDFC Trustee Company Limited

Mutual Fund

HDFC Mutual Fund

Asset Management Company

HDFC Asset Management Company Limited

Minimum Redemption Size in Rupees

Rs. 500

NAV (as of 29th November 2021)

Rs. 287.42 Crores

Investment Size

Minimum investment of Rs. 5000 and thereafter Rs. 1000 for additional purchases.

Liquidity

It is an open-ended scheme; therefore, investors can redeem or switch between unit funds after the declaration of the dividends or by putting the request of redeeming to the fund. Amount gets disbursed usually after 3-4 business days depending upon the amount.

Investment Objective

HDFC Balanced Advantage Fund aims for capital appreciation in the long term by investing in equity and debt funds, depending upon the nature of the market. Owing to the high-risk factor involved in the fund, there is no guarantee that the investment objective will be fulfilled at the time of the fund’s maturity.  

Fund Summary

  1. HDFC Balanced Advantage Fund – Regular Plan 

    For the Growth option:

    • NAV: Rs. 272.09 Crores, as of 29th November 2021

    • Expense Ratio: 1.63%

  2. HDFC Balanced Advantage Fund – Regular Plan 

    For the IDCW option:

    • NAV: Rs. 28.41 Crores, as of 29th November 2021

    • Expense Ratio: 1.63%

  3. HDFC Balanced Advantage Fund – Direct Plan 

    For the Growth option:

    • NAV: Rs. 287.42 Crores, as of 29th November 2021

    • Expense Ratio: 1.02%

  4. HDFC Balanced Advantage Fund – Direct Plan 

    For the IDCW option:

    • NAV: Rs. 31.23 Crores As of 29th November 2021

    • Expense Ratio: 1.02%

Fund Return Summary

Tenure

CAGR Percentage

Point to Point Return* on Standard Investment of Rs. 10000

1 Year

16.70%

13643.30

3 Years

11.33%

14497.10

5 Years

10.12%

18817.90

Since Inception

10.43%

264992.40

*Returns are subject to change. The investment risk in the investment portfolio is borne by the policyholder.

Pros and Cons

Pros

Cons

It has a diversified portfolio of equity and debt funds. 

HDFC Balanced Advantage Fund has a high-risk category.

Equity funds generate more income over long periods. 

Debt funds generate lower income compared to equity funds.

It will generate more income in the long term.

Not a suitable investment choice for the short-term period. 

Benefits of the HDFC Balanced Advantage Fund

Some benefits of the HDFC Balanced Advantage Fund are:

  1. Mixed funds

    HDFC Balanced Advantage Fund invests in both equity and debt funds. Therefore, you get the benefit of both types of funds. 

  2. Experienced fund

    HDFC Balanced Advantage Fund has a market experience of over two decades that makes it cautious as well as beneficial for your investment. 

  3. Long-term investment

    The ideal horizon for investing in HDFC Balanced Advantage Fund is 3 or more years. In that way, funds withstand market volatility and get better returns.   

Who Should Invest in the HDFC Balanced Advantage Fund?

Following people should invest in the HDFC Balanced Advantage Fund: 

  • HDFC Balanced Advantage Fund is suitable for investors who want to test the market by investing in both debt and equity funds. 

  • People who have an appetite for high risk should consider investing in HDFC Balanced Advantage Fund. 

  • If you have long-term financial goals, then you can choose to invest in the fund.

FAQ's

  • Q. What is the allocation by market cap of the HDFC Balanced Advantage Fund?

    A.
    Large Cap 46.48%
    Mid Cap 14.52%
    Small Cap 7.58%
    Others 0.14%
  • Q. What are the tax implications on the HDFC Balanced Advantage Fund?

    A. If units are sold within the first year of fund allotment, then you will be taxed under the 15% tax slab. Income less than Rs. 1 lac is exempted from tax, but income above that is taxed under the tax slab of 10%. 
  • Q. What is the ideal term duration for investing in HDFC Balanced Advantage Fund?

    A. As per the experts, the ideal investment horizon for the HDFC Balanced Advantage Fund should be three years.
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