HDFC Balanced Advantage Fund – The Secret Ingredient of a Healthy Plan

The pathology report is regarded as the mirror of a person’s health. With the help of this report, a person can literally have an in-depth scan of his internal organs and find out the problems, if any. Similarly, the mutual fund portfolio acts as a pathological report for a person’s financial plan. If studied closely, the portfolio can reveal the strengths and weakness of the plan, thus helping to take corrective measures, if required.

To create a strong portfolio that works in your favour, you need to add funds such as HDFC Balanced Advantage Fund to it. It is a powerful combination of growth and wealth creation that can take your investment game plan to a whole new level.

Let’s learn some intriguing facts about this fund, which are penned down in this article.

A Preface to HDFC Balanced Advantage Fund

HDFC Balanced Advantage Fund – Regular Plan (G), erstwhile HDFC Prudence Fund, is basically a hybrid equity fund that is primarily engaged in wealth building and capital appreciation. It is a giant fund with an estimated net worth of ₹42, 592 crore (as on 31st May 2019), which took over HDFC Growth Fund – one of the top-performing schemes of HDFC Mutual Fund. Owning such a huge asset base has crowned the fund as one of the wealthiest, most powerful fund in the Indian investing regime. Thus, an investment here will surely open doors for rapid wealth creation for the investors.

The Investment Philosophy

Although there are many factors that govern the success of a mutual fund, but the investment philosophy is paramount. This involves the section of stocks, the industries to which they belong, and also the timely curation of the portfolio to align it with the latest market advancements. Hence, in order to be sure that the fund that you have selected possesses all these merits, it’s important to give a close study to the portfolio.
HDFC Balanced Advantage Fund – Regular Plan (G) follows a unique style of investing. It has a dynamic portfolio assorted with different kinds of stocks, which makes it an even more fertile option for wealth building. Let’s check out the current portfolio standings of the fund: -

There are both equity and debt instruments present in the portfolio. While the former adds energy to it, the latter takes care of the risk cover from the market volatility.
The portfolio is equity-oriented, since 83.03% of the assets are in equity and related instruments.
For the sake of diversification, investment has been made in multiple industries which includes big players of the market, such as Financial & Banking sector, Energy sector, Technology sector, Construction sector, and Chemicals sector.
The portfolio is confined within 67 stocks, which range from small to large cap stocks. The top 10 holding – which includes companies like State Bank of India, ICICI Bank, Infosys, Larsen & Toubro, and Reliance Industries – hold 54.06% of the assets of the fund.
The companies mentioned above have P/E ratios in a wide range that stretches from 8.86 times to a whopping 142.10 times. However, thanks to the fine fund management team of HDFC Balanced Advantage Fund, the average P/E ratio of the fund is kept at a low level of 15.74 times.

The Impact of the Portfolio on the Performance

Like the way our diet greatly impacts our body, the portfolio of a fund impacts its performance. Since HDFC Balanced Advantage Fund (G) carries a diverse portfolio in its belly, the resulting numbers are quite appealing. In the last five years, the fund’s performance stood at an average of 10.21%, whereas the average since inception was noted at 18.61%. This is a phenomenal streak of performance, which testifies that this fund will perfectly sit in a high performing portfolio geared towards high wealth building and steady income generation.

Hence, if you are aspiring to create a mutual fund plan for your future goals, then you must add HDFC Balanced Advantage Fund in your plan. Its dynamic portfolio will help you to reach at your desired goals in an efficient manner.

Read out the essentials of HDFC Balanced Advantage Fund (Growth) which are described in this article.