Hdfc balanced advantage fund price

Balanced Advantage Funds are hybrid funds that invest in both equity and debt. The allocation across equity and debt is not fixed and keep changing based on the market outlook and views of the fund management team. Balanced Advantage Funds are good for conservative investors who are looking to generate higher returns than debt with limited risk. However, HDFC Balanced Advantage Fund is managed more aggressively than its peers and does not use derivatives to reduce its equity exposure below 65% of the corpus. The fund at present has close to 70% in equity whereas the peers had lower equity allocation. At the current market level from a return perspective, this fund would have generated a higher return compared to peers from the balanced advantage category because of high equity allocation, but it also adds more volatility. You cannot compare balanced advantage hybrid funds with equity diversified funds as the fund will have a reasonable allocation in debt all the time. The fund has given returns of close to 18% p.a. in the last three years which is fair considering it is a balanced fund and market conditions during the period. If your investment horizon continues to be long-term even after holding it for three years and at the same time you want to take limited risk then you may continue to hold on with your investment in HDFC Balanced Advantage Fund. If you would like to take some additional risk and are willing to give more time then you can switch into an equity diversif...

View Full Image Sarvesh Kumar Sharma/Mint The reduction in the equity exposure in the fund assumes significance as it the biggest scheme in the dynamic asset allocation category, which includes balanced advantage funds. HDFC Balanced Advantage Fund had assets under management of ₹41,319 crore as of 30 November. “The whole objective of BAFs is to manage their equity exposure dynamically but HDFC BAF had kept allocation static (65-80% equity) for many years and above 80% throughout calendar year 2021, unlike other BAFs," said Amol Joshi, founder of Plan Rupee Investment Services. In terms of performance, the scheme has delivered a return of 34.9% on a one-year basis, 13.9% on three-year basis and 11.6% on a five-year basis. Balanced advantage funds are allowed to go 0-100% in equity or in debt depending on the market conditions. Hybrid funds are favoured by investors as they seek to find a balance between growth and income by investing in both equity and debt. Balanced advantage funds have seen a sharp spike in their popularity over the past few years. This is because asset management companies (AMCs) use derivatives to reduce the effective equity exposure in them below 65% while maintaining the gross exposure at or above 65%. This ensures equity-like taxation at a lower risk level. The BAF category at a size of ₹1.65 trillion at the end of November has become the largest category among hybrid funds. The scheme category received net funds totalling ₹6,094.03 crore during the...

An open ended Balanced Advantage Fund. This Fund aims to provide long term capital appreciation/income from a mix of equity and debt investments. Different asset classes exhibit different risk-return profile and relatively low correlation to each other as compared to investments within the same asset class. The fund manager will determine asset allocation between equity and debt depending on prevailing market and economic conditions. The debt-equity mix at any point of time will be a function of interest rates, equity valuations, medium to long term outlook of the asset classes and risk management, etc.