This HDFC Hybrid Fund Has Given Return of 261.12% Since Inception

HDFC Balanced Advantage Fund has given absolute return of 261.12% since inception. It is the top performing scheme in the category of balanced advantage funds. The scheme was launched in February 01, 1994 and has given absolute return of 63.99% over 3-year. Here are the details.

About HDFC Balanced Advantage Fund

The scheme is a balanced advantage hybrid fund that aims to provide long term capital appreciation/income from a mix of equity and debt investments. Different assets act differently to market movements at any given point in time and have low correlation with each other. So the scheme risk is mitigated with each of the class and deliver the best of both worlds.

HDFC Balanced Advantage Fund performance

HDFC Balanced Advantage Fund has given absolute return of 261.12% and annualised return of 13.48% since inception. The annualise return of the scheme for 3 -years is 17.85%, higher than the category average return of 10.18% and its trailing return is 16.28% for the same period. The scheme has given 78.16% absolute return and annualised return of 12.24% in 5 year.

In the bear cycle of the market the scheme has given negative return of 30.36% and during the bull cycle it gave 76.36% return.

Portfolio of HDFC Balanced Advantage Fund

The balanced advantage fund has 63.2% exposure to equity, 24.5% to debt and 10.1% to cash. Equity exposure consist of financials stocks (34%) of large banks like HDFC, SBI and ICICI along with Energy stocks (22.6%) NTPC, Coal India and Gail. Among debt holdings, the scheme has given maximum weightage to sovereign (18.06%) and AAA rated investments (5.5%).

Suitability of the scheme

HDFC Balanced Advantage Fund's objective is to provide long term capital appreciation/income from a dynamic mix of equity and debt investments, i.e. wealth creation.

Based on its objective, the scheme is suitable for investors who want to invest in a mix of equity and debt instruments for long term provided they have an appetite to deal with extremely high risks.

Risk and rating

HDFC Balanced Advantage has got a 5-star rating from Morningstar for its consistent track record.

The mean deviation of average return of the portfolio of the scheme is 19.9 and it has a Beta of 0.96. Beta describes the volatility of the scheme as compared to the overall market. Since the beta of the fund is less than 1, it indicates, lower volatility compared to the overall market.

The scheme is an extremely high risk investment option. Also, note the past performance of scheme is no indication of future performance.

Disclaimer

Mutual fund investments are subject to market risk. The above-mentioned information is purely informational and doesn't guarantee any return. Greynium Information Technologies and the Author are not liable for any losses caused as a result of a decision based on the article.