HDFC Balanced Advtange Fund
Date Published: November 15, 2024
FUND FACTS
|
Nature |
Open ended |
Fund Manager |
Gopal Agrawal, Srinivasan Ramamurthy, Arun Agarwal, Nirman Morakhia, Anil Bamboli. |
|
Date of Allotment/ Inception Date |
February 01, 1994 |
Benchmark Index |
NIFTY 50 Hybrid Composite debt 50:50 Index |
|
NAV (Rs.) |
512.84 ( 30-Aug-2024 ) |
Corpus (Rs.in Crs.) |
94048.24 ( Jul-2024 ) |
|
Investment Objective |
To provide long term capital appreciation / income from a dynamic mix of equity and debt investments. There is no assurance that the investment objective of the Scheme will be achieved. |
||
PORTFOLIO COMPOSITION
As of 30th Aug 2024, the fund has 49.98% of its net assets invested into equity & equity related instruments, 29.30% in debt and balance 20.72% in cash and others. The large cap holdings constitute of 51.50% (market cap > Rs.84,325 crs), 6.24% in midcap (market cap > Rs.27,564 and < Rs.84,325 crs), 6.80% in small cap (market cap 0 > Rs.27,564 crs), and balance 35.47% in debt and cash component. The top 10 holdings of the scheme constitute 30.93% of its net assets. It may be observed that the Quarterly Average AUM of the fund for the end of September 2024 is 45,335.34 crs.
PORTFOLIO ANALYSIS
Launched in February 1994, HDFC Balanced Advantage Fund is the largest scheme not just in the Balanced Advantage Fund category but also across equity-oriented mutual funds. Positioned within the Balanced Advantage Fund category, this fund retains the flexibility to dynamically distribute its assets between equity and debt. However, it consistently maintains an equity-centric portfolio to provide investors with the advantage of equity taxation
Table 1 above tabulates the allocation of top 10 sectors by the fund. The fund has an allocation to 17 sectors, wherein the top 5 sectors constitutes to 81.91%, maintaining an average equity exposure of 55.31%.
The risk parameter graph measures standard deviation (S.D.) across all the Hybrid: Dynamic Asset Allocation schemes. The S.D. of the scheme is 9.36%, which is higher than the industry average of the Dynamic Asset Allocation schemes of 7.37%. The Sharpe ratio of the scheme is 1.63%, which is higher than the industry average 0.92%.
Monthly SIP and Lumpsum: Exhibit 2
Note: (1) Performance is on August 30, 2024. (2) Returns are calculated on the basis of annual compounding. As it may be observed in Exhibit 2, the returns of the fund in both modes (ie. Monthly and Lumpsum) across various time periods witnessed with mixed noticeable variations.
PERFORMANCE
In Exhibit 3, the fund has outperformed its category average in 6 months, 1 year, 3 years and 5 years’ time period. HDFC Balanced Advantage Fund's equity portfolio is diversified across different market caps, with a focus on large-cap stocks to provide stability and consistent growth. Additionally, the fund strategically incorporates mid and small-cap stocks to enhance overall portfolio returns. The fund also allocates a significant portion to corporate debt instruments with moderate to high ratings. This strategy aims to balance risk and return, ensuring stability and potential for attractive returns in the debt segment of the portfolio. This fund is well-suited for investors seeking a fund driven by strong conviction across equity and debt and having a long-term horizon of at least 3-5 years.
Please Note: The ratings mentioned in the report are declared by Value Research
PEER COMPARISON
