HDFC Balanced Advantage Fund: Performance result grows with 128.38% return in last 5 years

The HDFC Balanced Advantage Fund dynamically adjusts its asset allocation between equities and debt, making it suitable for investors seeking moderate to high returns with controlled risk. Its diversified portfolio across large, mid, and small-cap stocks, along with strategic debt investments, ensures a balanced risk-return trade-off. The fund’s strong performance, low turnover ratio, and superior risk-adjusted returns make it an attractive option for medium to long-term investors.

HDFC Balanced Advantage Fund Investment Strategy

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  • Dynamic Asset Allocation: The fund adjusts its allocation between equity and debt depending on market conditions and valuation metrics. This dynamic approach helps in capturing growth opportunities while managing risks.
  • Diversified Equity Exposure: The fund invests in a mix of large-cap, mid-cap, and small-cap stocks, with a significant bias towards large-cap stocks for stability.

HDFC Balanced Advantage Fund Returns

HDFC Balanced Advantage Fund Portfolio Composition (as of 30th April, 2024)

The HDFC Balanced Advantage Fund’s portfolio is well-diversified across various sectors and asset classes, ensuring a balanced risk-return profile.

  • Equity Holdings: 66.82%
  • Debt Holdings: 27.66%
  • Others: 5.52%
Equity Allocation:
  • Large Cap Investments: 42.11%
  • Mid Cap Investments: 6.86%
  • Small Cap Investments: 7.71%
Top 10 Stocks in Portfolio:
  1. HDFC Bank Ltd.
    • Percentage of Total Holdings: 5.96%
  2. Coal India Ltd.
    • Percentage of Total Holdings: 3.87%
  3. State Bank Of India
    • Percentage of Total Holdings: 3.66%
  4. ICICI Bank Ltd.
    • Percentage of Total Holdings: 3.54%
  5. National Thermal Power Corporation Ltd.
    • Percentage of Total Holdings: 3.27%

Sectoral Allocation:

  • Banking and Financial Services: Major holdings in HDFC Bank, State Bank of India, and ICICI Bank provide significant exposure to the banking sector.
  • Energy and Power: Investments in Coal India and NTPC offer stability and growth from the energy sector.
  • Technology: Infosys represents the robust growth potential of the Indian IT sector.
  • Consumer Goods: ITC provides exposure to the diversified FMCG sector.

HDFC Balanced Advantage Fund Portfolio Management and Turnover

  • Turnover Ratio: 15.89%
    • The low turnover ratio indicates that the fund manager adopts a long-term investment strategy, holding stocks and bonds longer than peers (category average turnover ratio is 422.53%).

HDFC Balanced Advantage Fund Risk Ratios (as of 30th April, 2024)

  • Standard Deviation: 8.39 (Higher volatility compared to the category average of 6.29)
  • Beta: 0.95 (Indicates higher volatility relative to the market, with the category average at 0.75)
  • Sharpe Ratio: 1.99 (Better risk-adjusted returns compared to the category average of 0.83)
  • Treynor’s Ratio: 0.18 (Higher risk-adjusted returns than the category average of 0.07)
  • Jensen’s Alpha: 11.84 (Indicates superior performance relative to the expected market returns, with the category average at 1.74)

Disclaimer: The information provided in this article is for educational and informational purposes only. It should not be considered as investment advice or a recommendation to invest in any particular mutual fund or asset class. Past performance does not indicate future results, and investors should research and consult with a financial advisor before making investment decisions. Investing in mutual funds involves risks, including the possible loss of principal invested.