The HDFC Multi-Asset Fund is designed to offer a diversified portfolio comprising equities, debt, and other assets. This multi-asset allocation strategy aims to balance risk and reward by leveraging the strengths of different asset classes.
HDFC Multi-Asset Fund Growth Strategies
- Equity Allocation:
- The fund has 65.78% investment in domestic equities.
- A significant portion (46.45%) is allocated to large-cap stocks, ensuring stability and lower volatility.
- Mid-cap stocks constitute 3.61% of the portfolio, providing growth potential.
- Small-cap stocks, at 3.09%, add a higher risk but potential for higher returns.
- Debt Allocation:
- The fund invests 14.2% in debt instruments.
- Government securities form 8.67% of this allocation, offering safety and assured returns.
- Low-risk securities make up 5.53%, providing a steady income stream.
- Other Assets:
- The remaining 20.02% is diversified into other assets, including gold, which helps in hedging against market volatility.
HDFC Multi-Asset Fund Performance Analysis
Comparative
| Category | 1 D | 1 M | 3 M | 6 M | YTD | 1 Y | 2 Y | 3 Y | 5 Y |
| This Fund | 0.14% | 0.59% | 4.54% | 11.99% | 7.58% | 22.91% | 17.68% | 14.62% | 15.44% |
| Nifty 50 | 0.19% | -0.33% | 2.49% | 11.91% | 3.68% | 21.50% | 16.53% | 13.06% | 13.56% |
| Category Average | 0.30% | 1.15% | 6.19% | 14.60% | 9.61% | 28.63% | 20.94% | 16.83% | 18.43% |
| Category Rank | 13/16 | 20/23 | 19/21 | 13/16 | 13/16 | 9/12 | 7/9 | 7/9 | 4/6 |
| Best in Category | 0.70% | 2.56% | 10.16% | 31.04% | 22.44% | 52.02% | 31.95% | 26.58% | 30.29% |
| Worst in Category | 0.10% | -0.36% | 1.26% | 3.96% | 3.30% | 14.71% | 11.05% | 7.89% | 13.79% |
1-Year Performance (as of 30th May, 2024)
- Absolute Returns: 21.37%
- Rank within Category: 9/12
In the past year, the fund has delivered an absolute return of 21.37%, translating to annualised returns of 21.31%. While these returns are substantial, the fund slightly underperformed the category average of 26.74%, indicating room for improvement in this timeframe. The fund ranks 9th out of 12 in its category.
3-Year Performance
- Absolute Returns: 45.77%
- Rank within Category: 7/9
Over a three-year period, the fund has achieved an absolute return of 45.77%, equating to annualised returns of 13.35%. These returns are solid but again trail the category average of 15.52%. The fund ranks 7th out of 9, suggesting it has performed moderately well but could benefit from enhanced asset allocation strategies to improve its competitive positioning.
5-Year Performance
- Absolute Returns: 93.18%
- Rank within Category: 5/6
In the long-term span of five years, the fund has nearly doubled its initial investment, with an absolute return of 93.18%, resulting in annualised returns of 14.06%. However, it has underperformed compared to the category average of 17.23%. The fund ranks 5th out of 6 in its category, indicating it is one of the lower performers over this period and may need to adjust its strategy to better compete with peers.
HDFC Multi-Asset Fund Portfolio Analysis
- Equity Holding: 65.78%
- Debt Holding: 14.2%
- Others: 20.02%
- Number of Stocks: 65
- Large Cap: 46.45%
- Mid Cap: 3.61%
- Small Cap: 3.09%
- Other: 12.63%
HDFC Multi-Asset Fund Top 10 Stock Holdings
- HDFC Bank Ltd.: 6.06%
- Axis Bank Ltd.: 5.04%
- ICICI Bank Ltd.: 4.09%
- Bharti Airtel Ltd.: 2.20%
- Titan Company Ltd.: 2.06%
Risk Ratios
- Standard Deviation: 5.93 Indicates lower volatility compared to the category, suggesting more stable returns.
- Beta: 1.37 Higher than average, indicating the fund is more volatile compared to the market.
- Sharpe Ratio: 1.21 Superior risk-adjusted returns show that the fund compensates well for the risk taken.
- Treynor’s Ratio: 0.05 Lower than average, implying that the risk-adjusted returns relative to the fund’s beta are less favorable.
- Jensen’s Alpha: 6.68 Positive and higher than the category average, indicating the fund’s returns exceed those predicted by its beta
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.
