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HDFC Balanced Fund

HDFC Balanced Advantage Fund is a Hybrid mutual fund offered by HDFC Asset Management Company (HDFC Mutual Fund). This fund invests in a combination of equity and debt instruments and is ideal for wealth creation over a long period of time.

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 realized.

Note: All information has been sourced from the official website of HDFC Mutual Fund.

Features of HDFC Balanced Fund

The salient features of this plan are:

  1. It is a hybrid fund which invests in both equities and debt instruments.
  2. The fund has 81.8% investment in Indian stocks of which 67.49% is in large cap stocks, 8.08% in mid cap stocks, 6.23% in small cap stocks.
  3. The fund has 15.3% investment in debt of which, 13.89% is in funds invested in very low risk securities.
  4. This is the largest hybrid fund in the Industry with the Return rate of 18.63% since inception.
  5. Equity Strategy - Effective diversification of portfolio with flexibility to invest in small/mid/large cap stock of good quality companies.
  6. Portfolio duration is actively managed based on the outlook for interest rates with a 2-3 year view.
  7. HDFC Prudence Fund merged with HDFC Growth Fund to form HDFC Balanced Advantage Fund.

Statistics of HDFC Balanced Fund

NameHDFC Balanced Advantage Fund (HBAF)
TypeBalanced Advantage Fund - Open Ended
BenchmarkNIFTY 50 Hybrid Composite Debt 65:35 Index (Total Returns Index)
  • Entry Load: Not Applicable.
  • Exit Load
  • In respect of each purchase/switch-in of units, upto 15% of the units may be redeemed without any exit load from the date of allotment.
  • Any redemption in excess of the above limit shall be subject to the following exit load - Exit load of 1.00% is payable if units are redeemed/switched-out within 1 year from the date of allotment of units.
  • No exit load is payable if units are redeemed/switched-out after 1 year from the date of allotment.
  • Subscription Amount
  • Purchase: Rs. 5,000 and any amount thereafter.
  • Additional Purchase: Rs. 1,000 and any amount thereafter
  • Plan OptionsRegular Plan:
  • Growth Option
  • Dividend Option with Payout and Reinvestment facility.
  • Direct Plan:
  • Growth Option
  • Dividend Option with Payout and Reinvestment facility.
  • Transaction ChargesFor First Time Mutual Fund Investor (across Mutual Funds):
  • Rs. 150 per purchase/subscription of Rs. 10,000 and above will be deducted from the purchase/subscription amount for payment to the distributor.
  • Investor other than First Time Mutual Fund Investor:
  • Rs. 100 per purchase / subscription of Rs. 10,000 and above will be deducted from the purchase/ subscription amount for payment to the distributor.
  • In case of SIP:
  • Transaction Charges in case of investments through SIP are deductible only if the total commitment of investment (i.e. amount per SIP installment x No. of installments) amounts to Rs. 10,000 or more.
  • RiskModerately High
    NAVRs. 189.7 as on 27th August, 2019
    AUMRs. 41,471 Cr as on 28th August 2019
    Fund ManagerMr. Prashant Jain
    Expense Ratio1.9%
    Returns - 3 Years9.63%
    Returns - 5 Years10.02%
    Returns - 10 Years12.14%

    HDFC Balanced Fund Performance

    SIPInception15 Yr SIP10 Yr SIP5 Yr SIP3 Yr SIP1 Yr SIP
    Total Amount Invested303018001200600360120
    Market Value as on April 30th, 2019596106235.472384.73773.62413.87126.96
    Returns (%)19.4315.1313.1810.129.3012.63
    Benchmark Returns (%)NA11.4010.8310.5811.3312.95
    Additional Benchmark Returns (%)NA12.8212.1012.1613.9714.87

    Performance - Regular Plan - Growth Option

    PeriodReturnsBenchmark ReturnsAdditional Benchmarks
    1 Year6.82%9.92%10.84%
    3 Years13.83%12.89%15.91%
    5 Years14.46%11.83%13.32%
    Since Inception18.56%NANA

    Value of Investment of Rs. 10,000

    PeriodReturnsBenchmark ReturnsAdditional Benchmarks
    1 Year10,68210,99211,084
    3 Years14,75514,39115,580
    5 Years19,65517,49718,693
    Since Inception7,37,069NANA

    Top Holdings of HDFC Balanced Fund

    ICICI Bank Ltd9.52%
    State Bank of India9.33%
    Infosys Ltd8.82%
    Larsen & Toubro Ltd6.46%
    NTPC Ltd3.69%
    ITC Ltd3.67%
    Power Grid Corp Of India Ltd3.58%
    Reliance Industries Ltd3.52%
    State Bank Of India3.44%
    Tata Sons Limited3.28%

    Why Invest in HDFC Balanced Fund?

    HDFC Balanced Advantage Fund is an excellent investment option if you are looking to create wealth from a combination of financial instruments (equity and debt). This is the largest hybrid fund in the industry with a good return rate of 18.63% since inception.

    Documents Required to Purchase HDFC Balanced Fund

    The documents required to buy HDFC Balanced Advantage Fund are:

    • Application Form
    • PAN Card/Aadhaar Card
    • SIP/Auto Debit Registration Form
    • Bank Account Mandate
    • KYC - Proof of ID and Address
    • Latest Bank Statement

    FAQs on HDFC Balanced Fund

    Is balanced fund a good investment?

    Yes, a balanced fund is an excellent investment option.

    What is the new name of HDFC Balanced Fund?

    The new name of HDFC Balanced Fund is HDFC Balanced Advantage Fund.

    What is a balanced fund with example?

    A balanced fund is a type of mutual fund which comprises of substantial holdings in both equity and debt instruments. The HDFC Balanced Advantage is a fine example of a balanced fund.