Since its inception on February 1, 1994, the HDFC Balanced Advantage Fund has delivered a compounded annual growth rate (CAGR) of 18%. For perspective, this return means that ₹1 lakh investment at inception would have grown to ₹1.58 crore (158 times) now.
The fund is said to be one of the longest-running mutual funds in India.
With an AUM of ₹73,000 crore (as of December 31, 2023), the fund is amongst the largest actively managed mutual funds in the country,
HDFC Mutual Fund said.
About the fund
HDFC Balanced Advantage Fund, an open-ended Balanced Advantage Fund, has the primary aim of achieving long-term capital appreciation and income through a dynamic allocation between equity and debt investments.
Mutual fund's strategy
The
mutual fund employs a dynamic investment strategy, actively managing allocations between equity and debt instruments, the fund house said.
"The approach to equity investments is guided by a broad framework that primarily considers market valuations, including the trailing twelve-month Price to Earnings Ratio of NIFTY 50 and the Earnings Yield/G-Sec Yield Ratio. The fixed income strategy includes diversification across credits, asset types, and tenures, with duration adjusted based on interest rate views. The credit risk is mitigated by prioritizing Safety, Liquidity, and Returns (SLR)," it said in a statement.
Adding to this, Navneet Munot, MD & CEO of HDFC AMC, said that if asset allocation is the key, HDFC Balanced Advantage Fund makes it easy.
Gopal Agrawal, Senior Fund Manager, HDFC AMC, said, “HDFC Balanced Advantage Fund has successfully navigated through multiple market cycles with its disciplined approach to investing and focus on the long term. The fund is well-diversified and aims to continue capitalising on India’s growth opportunity.”
Performance
| 1-year | 3-year | 5-year |
| Scheme Returns (%) | 32.13% | 26.22% | 18.52% |
| Benchmark Returns (%) | 14.26% | 11.02% | 12.36% |
| Additional Benchmark Returns (%) | 21.30% | 17.24% | 16.25% |
(Source: HDFC Mutual Fund)
Fund managers
Srinivasan Ramamurthy serves as the fund manager for equity, while Gopal Agrawal holds the position of Senior Fund Manager in the equity domain.
Anil Bamboli takes charge as the Senior Fund Manager for fixed income. Additionally, Arun Agarwal serves as a Senior Fund Manager, contributing to the overall management of the fund.
Nirman S Morakhia also plays a role in fund management.
For overseas investments, the fund has Dhruv Muchhal.
(Edited by : Amrita)
First Published: Jan 31, 2024 3:22 PM IST
