Do you know what it means for a fund to go over Rs 1 trillion in assets? Pretty cool, right? The HDFC Balanced Advantage Fund just made headlines by being the first hybrid mutual fund in India to hit this mark.
This fund provides a mix of equity and debt instruments, tuning its asset allocation by considering the market conditions to make returns while managing risks.
By the end of this article, you will gain valuable insights into its impressive performance metrics and the factors contributing to its success. We will also discuss how to invest in this fund, assess its risk levels and evaluate whether it aligns with your financial goals.
HDFC Balanced Advantage Fund review
The HDFC Balanced Advantage Fund was established in 2006 and was designed to provide a mix of equity and debt securities to investors. It is a hybrid mutual fund that involves the dynamic allocation of assets based on market conditions.
This fund employs an investment philosophy that focuses on investing in high-quality stocks and bonds with disciplined portfolio management. It is qualified for investors seeking an approach that provides a balance between growth and risk.
It has shown good performance with a recent NAV of Rs 513.01 for the HDFC Balanced Advantage Fund Regular Growth Option. It has drawn returns of 5.7% over one year, 22.6% over three years and 25.22% over five years, ranking in the first position for three and five-year returns within the fund category.
Its history, strong track record, significant asset growth and balanced investment strategy make it a convincing option in the mutual fund market of India.
How to invest in the HDFC Balanced Advantage Fund?
The investment in the HDFC Balanced Advantage Fund can be done through several methods. Here is a guide on how to invest in these mutual funds.
Direct Investment Through HDFC Mutual Fund Website:
Visit the website.Register (if you are new) or log in (if already created).Navigate and select the suitable fund.Select an investment option (Regular or Direct Plan).Fill in the application form.Make payment through suitable means.Investment Through Mutual Fund Distributors:
Find a mutual fund distributor.Discuss your financial goals and risk appetites.Fill out the application form given by the distributor.Make payment as instructed.Investment Through Mobile Apps:
Download a mutual fund investment app.Create an account and complete the KYC process.Search for the fund.Invest in the fund, specify the amount and payment method.SIP- Systematic Investment Plan:
Select a SIP Option.Select Frequency (monthly, quarterly, etc).Fill out the SIP application.Set up auto-debit from your bank account.Who is the fund manager of HDFC Mutual Fund?
The HDFC Mutual Fund is managed by an experienced team of professional managers having expertise in different areas of the financial markets.
Here is a list of fund managers of the HDFC Balanced Advantage Fund with their expertise defined:
Srinivasan Ramamurthy: He is the senior fund manager of equities with an educational background in finance and asset management. He has experience in portfolio management.
Gopal Agrawal: He is also a senior fund manager in equities with a deep knowledge of equity & debt markets. He holds a lot of experience in the mutual fund industry, which enhances his understanding of market dynamics & investment strategies.
Anil Bomboli: He is a senior fund manager of Fixed Income with a CFA certification. He has expertise in investment analysis and portfolio management. With strong finance skills, he brings a quantitative approach to fund management.
Arun Agarwal: As a senior fund manager, he has a background in commerce and accounting. His expertise in financial management enhances the team's ability to evaluate investment opportunities.
All of them collectively form a strong management team for the HDFC mutual funds. Their different expertise and background in finance, investment analysis and asset management are a great contribution to the fund's growth.
Is the HDFC balanced advantage fund good for investment?
The HDFC mutual fund offers several benefits to investors with its dynamic approach and long-term growth perspective.
Here are the factors that describe why the HDFC Balanced Advantage Fund is worth investing in:
Dynamic Asset Allocation
This fund adjusts its assets between equity and debt securities dynamically according to current market conditions and trends.
Professional Management
Managed by doing thorough research conducted by professional experts who possess many years of experience in financial markets.
Risk Mitigation
This fund aims to reduce overall risk volatility by investing in a merger of equity and debt. The mix protects against market downturns.
Long-Term Capital Appreciation
This fund focuses on equities, which makes it appropriate for investors with a long-term investment perspective for growth.
Tax Efficiency
As a type of mutual fund, the HDFC Balanced Advantage Fund may provide tax benefits for investors, especially if the investment is held for more than one year.
SIP Option
This fund offers investments through SIP, which allows investors to invest small amounts regularly by following a systematic approach as well.
Diversification
This fund allows investments to be made in diverse sectors and asset classes of equity and debt, which helps in spreading risks.
How risky is the HDFC balanced advantage fund?
Although the HDFC Balanced Advantage Fund offers some attractive benefits to investors, it may carry some risks that are important to be taken care of.
This mutual fund carries several risks, including market, credit and interest rate risks. This fund carries a lot of risk, with possible losses of 20% and it may take 2-3 years to bounce back after market downturns.
Its performance can be affected by changes in the market because it invests in both stocks and bonds. While there is some chance for growth, investors need to be aware of the risks that come with this kind of mixed investment.
Conclusion
In short, the HDFC Balanced Advantage Fund can be a great choice for mutual fund investment, with a balanced strategy for higher growth while managing the risks effectively. This fund provides remarkable investment strategies to a diverse range of investors, including dynamic allocation and professional management.
By investing through a SIP in this fund, you can invest little by little, which helps lessen the ups and downs of the market as you build your wealth over time. Investing in the HDFC Mutual Fund means you are going with a well-established approach that aims for long-term financial success.
