In a single portfolio, a balanced fund has an equity stock component, a bond component, and sometimes a money market component. In general, these hybrid funds stick to a fairly consistent stock-bond mix that indicates either a moderate, or larger equities, component, or a conservative, or higher fixed-income, component orientation.
These funds invest in a combination of stocks and bonds, providing investors the best of both worlds. A healthy dosage of equity benefits balanced funds, but the debt element protects them from any downturn. Balanced funds are a good choice when markets are trading at their peak. Here are 4 best performing balanced funds from HFC Mutual funds.
HDFC Balanced Advantage Fund
The HDFC Balanced Advantage Fund had assets under management at Rs 41972.08 crore. As of August 31, 2021, the fund's expense ratio for the Regular plan was 1.62 percent.
"For units in excess of 15% of the investment, 1% will be levied for redemption within one year," according to the HDFC Balanced Advantage Fund's Exit Load. The needed minimum investment is Rs 5000, with an extra investment of Rs 1000. SIP investments start at Rs 500. The fund has a 4-star rating from the CRISIL rating agency.
The fund is invested in Indian stocks to the tune of 67.51 percent, with 47.83 percent in large-cap stocks, 9.87 percent in mid-cap stocks, and 8.15 percent in small-cap stocks. The fund has a debt investment of 19.23%, with 8.9% in government securities and 10.33% in funds invested in very low-risk securities.
HDFC Balanced Advantage Fund Direct Plan has a 1-year growth rate of 64.46 percent. It has had an average yearly return of 15.04 percent since its inception. National Thermal Power Corp. Ltd., Coal India Ltd., ICICI Bank Ltd., Power Finance Corpn. Ltd., and ITC Ltd. are the fund's top five holdings.
HDFC Equity Savings Fund-Growth
The scheme invests in stock and equity-related securities, arbitrage opportunities, and debt and money market instruments in order to provide capital appreciation.
The fund's expense ratio is 2.14 percent, which is greater than the expense ratios charged by most other Equity Savings funds. The fund now has a 66.45% stock allocation and a 29.16 percent debt allocation. HDFC Equity Savings Fund has a 1-year growth rate of 30.87 percent. It has returned an average of 9.69 percent per year since its inception. The financial, energy, healthcare, technology, and metals sectors make up the majority of the fund's equity holdings. The fund has a 4star rating from Value Research.
HDFC Hybrid Debt Fund
The HDFC Hybrid Debt Fund-Growth manages a total of 2,661 crores in assets (AUM). The fund's expense ratio is 1.87 percent, which is higher than the expense ratios charged by most other Conservative Hybrid funds. The fund now has a 24.47 percent equity allocation and a 67.37 percent debt allocation.
HDFC Hybrid Debt Fund's 1-year growth returns are 23.27 percent. It has had an average yearly return of 10.57 percent since its inception.
The financial, energy, construction, healthcare, and technology sectors make up the majority of the fund's equity holdings. The program invests largely in debt securities, money market instruments, and a moderate amount of stocks in order to create income and capital appreciation. The fund has 4star rating from Value Research.
HDFC Multi Asset Fund
The Direct-Growth manages assets worth Rs 1,186 crores (AUM). The fund has a 0.93 percent cost ratio, which is higher than most other Multi-Asset Allocation funds. The fund currently has a 66.35 percent stock allocation and a 16.06 percent debt allocation.
The 1-year returns for HDFC Multi-Asset Fund Direct-Growth are 32.83 percent. It has returned an average of 11.80 percent per year since its inception.
HDFC Gold Exchange Traded Fund, Infosys Ltd., HDFC Bank Ltd., ICICI Bank Ltd., and HDFC Bank Ltd. are the fund's top five holdings. The Scheme invests in a diversified portfolio of equities and equity-related assets, debt and money market instruments, and gold in order to provide long-term capital appreciation and income.
Please note investing in mutual funds is subject to market risks and one needs to be cautious at this point of time as markets have gone-up sharply. Neither the author, nor Greynium Information Technologies Pvt Ltd would be responsible for losses incurred based on a decision made.