HDFC Balanced Advantage Fund– Dynamic Allocation to Equity and Debt

Financial Markets are full of uncertainties and for an investor, managing one’s asset allocation mix dynamically is a challenging task, which may not be tax efficient. Therefore, Asset Allocation is key to wealth creation over long term and HDFC Mutual Fund aims to make it easy for you.

HDFC Balanced Advantage Fund (“the Scheme”) is an open ended balanced advantage fund. The Scheme is in operation for past 28 years and has successfully navigated through market cycles, crises, market excesses etc. with its disciplined approach to investing, focus on long term & effective diversification and by investing dynamically in combination of Debt and Equity.

The asset allocation is done with a medium to long term view and is a function of absolute and relative outlook on the asset classes. As of 31st March, 2022, unhedged equity exposure of the Scheme was ~60% of Total assets vs ~83% in April 2020 #@

The Scheme has a long track record of successful wealth creation. Rs 1 lac invested on inception date i.e. on February 01, 1994 would have grown to ~Rs 1.05 crore at CAGR of ~18%*.


A monthly SIP of Rs 10,000 on the first business day of every month in the Scheme since inception i.e. February 1, 1994 would have grown to Rs 8.59 crore*



Why HDFC Balanced Advantage Fund?

  1. The Scheme invests dynamically in a combination of Equity and Debt instruments wherein the allocation between equity and debt is a function of

    • Valuations
    • Growth outlook
    • Interest rates, etc.

  2. Track record of over 28 years
  3. Equity Taxation#
  4. Tax efficient** way to manage asset allocation

Who is the Scheme suitable for?

The Scheme is suitable for investors who are looking:

  • To maintain their asset allocation in a convenient and tax efficient** manner
  • For a well-diversified portfolio between equity and debt
  • For an investment horizon of over 3 years.

A. SIP Performance - Regular Plan - Growth Option

SIP since inception* of Rs. 10,000 invested systematically on the first business day of every month
(total investment Rs. 33.80 lakh) in HDFC Balanced Advantage Fund would have grown to ~Rs.8.59 crore$$ by March 31, 2022 (refer below table).

SIP Investments Since Inception* 15 year SIP 10 year SIP 5 year SIP 3 year SIP 1 year SIP
Total Amount Invested (Rs.in 000) 3,380.00 1,800.00 1,200.00 600.00 360.00 120.00
Market Value as on March 31, 2022 (Rs.in 000) 85,908.43$$ 5,548.43 2,436.12 862.24 490.39 129.24
Returns (%) 18.6%$$ 13.78% 13.57% 14.50% 21.18% 14.67%
Benchmark Returns (%)# N.A. 11.12% 11.87% 13.09% 15.11% 8.60%
Additional Benchmark Returns (%)## 13.73% 13.10% 14.70% 17.41% 23.02% 12.95%

CAGR returns are computed after accounting for the cash flow by using XIRR method (investment internal rate of return). The above investment simulation is for illustrative purposes only and should not be construed as a promise on minimum returns and safeguard of capital. SIP - Systematic Investment Plan. Since Inception Date = Date of First allotment in the Scheme / Plan.

B. Performance - Regular plan - Growth Option

NAV as at January 31, 2022 Rs. 286.321 (per unit)
Value of investment of (₹) 10,000
Period Scheme Returns (%) Scheme Benchmark Returns(%)# Additional Benchmark Returns(%)## Scheme(Rs.) Benchmark(Rs.)# Additional Benchmark(Rs.)##
Last 1 Year 21.04 12.66 20.26 12,104 11,266 12,026
Last 3 Years 12.35 12.97 15.82 14,196 14,431 15,557
Last 5 Years 10.91 11.84 15.14 16,787 17,502 20,246
Since Inception* 17.98$$ N.A. 11.08 10,56,355$$ N.A. 1,93,060

*Inception Date: February 01, 1994. The Scheme is managed by Mr. Prashant Jain since February 20, 2003. # NIFTY 50 Hybrid Composite debt 50:50 Index (w.e.f December 01, 2021).## NIFTY 50 (Total Returns Index). Scheme performance may not strictly be comparable with that of its Additional Benchmark in view of balanced nature of the scheme where a portion of scheme’s investments are made in debt instruments.$$ All IDCWs declared prior to the splitting of the Scheme into IDCW & Growth Options are assumed to be reinvested in the units of the Scheme at the then prevailing NAV (ex-IDCW NAV). As NIFTY 50 TRI data is not available since inception of the scheme, additional benchmark performance is calculated using composite CAGR of NIFTY 50 PRI values from February 1, 1994 to June 29, 1999 and TRI values since June 30, 1999. Since Inception Date = Date of First allotment in the Scheme / Plan.

C. Performance of Other Mutual Fund Schemes Managed By Mr. Prashant Jain, Fund Manager of HDFC Balanced Advantage Fund (who manages total 3 schemes)

Returns (%) as on January 31, 2022
Scheme Managing scheme since Last 1 year(%) Last 3 years(%) Last 5 years(%)
HDFC Flexi Cap Fund (Erstwhile HDFC Equity Fund) June 20, 2003 26.82 14.04 13.20
Benchmark - NIFTY 500 (Total Returns Index) 22.29 16.75 14.55
HDFC Top 100 Fund June 20, 2003 20.85 11.31 11.54
Benchmark - NIFTY 100 (Total Returns Index) 20.63 15.68 14.66

On account of difference in type of scheme, asset allocation,investment strategy, inception dates, the performance of these schemes is strictly not comparable.The above returns are of Regular Plan- Growth Option.

Notes common to all tables:
Past performance may or may not be sustained in the future. Returns greater than 1 year period are compounded annualised (CAGR).Load is not taken into consideration for computation of above performance(s). Different plans viz. Regular Plan and Direct Plan have different expense structures. The expenses of the Direct Plan under the scheme will be lower to the extent of the distribution expenses/commission charged in the Regular Plan. Returns as on January 31, 2022. The above returns are of Regular Plan- Growth Option. N.A.: Not Available

D. Performance of Permitted Category FPI Portfolio(s) managed by the Fund Manager (Mr. Prashant Jain)

Returns (%) as on January 31, 2022
Managing scheme since Last 1 year(%) Last 3 years(%) Last 5 years(%)
Permitted Category FPI Portfolio (managed under a bilateral agreement under Regulation 24(b) and subject to applicable laws) 22-Mar-2016 27.04 15.56 14.76
Benchmark - MSCI India (Total Returns) 22.69 16.58 14.79

Past performance may or may not be sustained in the future. Returns greater than 1 year period are compounded annualised (CAGR). The above returns are computed using the Time Weighted Rate of Return (TWRR) methodology, to make them more comparable with the mutual fund scheme's returns. FPI Portfolio: Inception date is 22nd March, 2016. The performance is not comparable with the performance of the aforementioned scheme(s) of HDFC Mutual Fund due to differing investment objective/s and fundamental differences in asset allocation, investment strategy and the regulatory environment. The said disclosure is pursuant to SEBI Circular no. Cir/IMD/DF/7/2012 dated 28th February, 2012 pertaining to Regulation 24(b) of SEBI (Mutual Funds) Regulations, 1996. N.A. Not Applicable. FPI - Foreign Portfolio Investor.

^ Past performance may or may not be sustained in the future. HDFC Mutual Fund/AMC is not indicating or guaranteeing returns on any investments.Stocks/Sectors referred herein are illustrative and the fund may or may not have any present or future positions in these stocks /sectors.The same should not be construed as an investment advice or a research report or a recommendation by HDFC Mutual Fund/HDFC AMC to buy or sell the stock or any other security covered under the respective sector/s. Readers should seek professional advice before taking any investment decisions.

*Data as on March 31, 2022. CAGR- Compound Annual Growth Rate. All dividends declared prior to the splitting of the Scheme into IDCW & Growth Options are assumed to be reinvested in the units of the Scheme at the then prevailing NAV (ex-IDCW NAV).Past performance may or may not be sustained in future. HDFC AMC/ HDFC MF is not guaranteeing any returns on investment in the schemes.Load is not taken into consideration.Returns are of Regular Plan - Growth Option. Please refer above For complete details.

# Scheme invests at least 65% (hedged + unhedged) in equities.As per prevailing tax laws.

@The current investment strategy is subject to change depending on the market condition. For complete portfolio details refer the website viz. www.hdfcfund.com

**Income earned by mutual fund is exempt from tax u/s 10 (23D) of the Income Tax Act, 1961


This product is suitable for investors who are seeking~:

  • To generate long-term capital appreciation / income
  • Investments in a mix of equity and debt instruments
~ Investors should consult their financial advisers, if in doubt about whether the product is suitable for them.

For latest Riskometer, investors may refer to the Monthly Portfolios disclosed on the website of the Fund viz. www.hdfcfund.com

SCHEME AND BENCHMARK RISKOMETER

NAME OF BENCHMARK AND RISKOMETER

NAME OF SCHEME

RISKOMETER OF THE SCHEME

HDFC Balanced Advantage Fund

(an open ended balanced advantage fund)

HDFC Top 100 Fund

(an open ended equity scheme predominantly investing in large cap stocks)

HDFC Flexi Cap Fund

(an open ended dynamic equity scheme investing across large cap, mid cap, small cap stocks)

Benchmark and Scheme Riskometer as on March 31, 2022