With Over 31% Returns On 3-Years SIP, This Balanced Advantage Fund Is Good To Invest

Balanced Advantage Funds are equity mutual fund schemes. These funds can expand their stock exposure to 80 per cent depending on equity prices, with a minimum of 30 per cent. The remaining funds are invested in debt securities. Balanced Advantage Funds sell equities in their portfolio when values are high and buy them again when markets fall. Such a rapid, effective, and cautious investment technique allows the investor to comfortably deal with market volatility. These funds benefit investors from both sides, equity and debt. In this article, we have given insights into one such fund, the fund has offered good returns on SIP as well as lump-sum investments.

HDFC Balanced Advantage Fund - Direct Plan-Growth

Launched on September 11, 2002, by the HDFC Mutual fund, this Balanced Advantage Hybrid fund is an open-ended fund with a dynamic asset allocation strategy. It is a highly risky medium-sized fund of its category.

The Fund has worth Rs 43950.49 crore of Asset Under Management (AUM). The Net Asset Value (NAV) of the fund declared on 12th May 2022 is Rs 292.418. The fund has an expense ratio of 0.97%, which is less than its category average expense ratio.

As the fund is a highly risky fund investment, it doesn't guarantee returns either. However, the fund is rated 4-star by the CRISIL and has given above-average performance among peer funds.

Investment in this fund starts with the minimum required amount of Rs 5,000 and Rs 1,000 for additional investment. IT required a minimum of Rs 500 to start SIP. There is no lock-in period in this fund. It charges 1% on redemption in excess of 15% of the investment within 365 days. 

The fund's benchmark is the NIFTY 50 Hybrid Composite debt 50:50 Index. It aims to offer long term capital appreciation or income from a dynamic mix of equity and debt investments as the fund is a hybrid mutual fund

Absolute and Annualised Returns

Lump-Sum Investment Returns

Since its launch, it has delivered 13.53% average annual returns.

Tenure	Absolute Returns	Annualised Returns
1 Year	13.41%	13.41%
2 Year	80.84%	34.48%
3 Year	45.85%	13.37%
5 Year	73.16%	11.60%
Since Inception	208.58%	12.79%

SIP Returns

Tenure	Absolute Returns	Annualised Returns
1 Year	1.39%	2.60%
2 Year	22.32%	20.74%
3 Year	31.11%	18.42%
5 Year	41.00%	13.72%

Portfolio

The fund has 65.3% investment in equities of which 47.69% is in large-cap stocks, 6.7% is in mid-cap stocks, and 6.68% is in small-cap stocks. Fund has 26.49% investment in Debt of which 19.97% in Government securities, and 6.52% in funds invested in very low-risk securities.

The fund's equity portion is primarily invested in the Financial, Energy, Construction, Materials, and Consumer Staples sectors. The debt portion of the fund has never seen a credit event - emphasing the strong credit process followed by the fund. The fund's top holdings are in Government of India, State Bank of India (SBI), Reserve Bank of India (RBI), Coal India Ltd., and National Thermal Power Corp. Ltd.

Disclaimer

Mutual fund investments are subject to market risk. Read all scheme related documents, and Terms and Conditions carefully before investing. The above-mentioned information is purely informational and doesn't guarantee any return. The Greynium Information Technologies and the Author are not liable for any losses caused as a result of a decision based on the article.