Mutual Fund Comparison: Nippon India Balanced Advantage Fund vs HDFC Balanced Advantage Fund

Nippon India Balanced Advantage Fund 

Nippon India Mutual Fund manages growth and seeks to generate long-term capital appreciation and current income from a portfolio of equity and equity-related and fixed-income securities. 

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HDFC Balanced Advantage Fund

Managed by HDFC Mutual Fund, aims to provide long-term capital appreciation by investing in a mix of equity and debt instruments. 

Comparative Analysis

Attribute Nippon India Balanced Advantage Fund – Growth HDFC Balanced Advantage Fund – IDCW
Fund  Nippon India Mutual Fund HDFC Mutual Fund
NAV (Date) ₹160.7643 (6-Jun-2024) ₹39.02 (6-June-2024)
Inception Date 15-Nov-2004 11-Sep-2000
Fund Size ₹7928.38 Cr ₹83548.61 Cr
Expense Ratio 1.76% 1.38%
Category Average Expense Ratio 1.98% 1.98%
Portfolio Turnover Ratio 331.00% 15.89%
Risk Level Very High Very High

Portfolio Composition

Nippon India Balanced Advantage Fund – Growth HDFC Balanced Advantage Fund – IDCW
Equity Holdings 67.15% 66.82%
Debt Holdings 24.08% 27.66%
Other Holdings 8.77% 5.52%
No. of Stocks 66 158
Top 3 Equity Holdings ICICI Bank Ltd., HDFC Bank Ltd., Infosys Ltd. HDFC Bank Ltd., Coal India Ltd., State Bank Of India
Top 3 Debt Holdings Government Securities, Low Risk Securities Government Securities, Low Risk Securities

Top Stocks in Each Portfolio

Stock Sector
ICICI Bank Ltd. Private sector bank
HDFC Bank Ltd. Private sector bank
Infosys Ltd. Computers – software & consulting
Reliance Industries Ltd. Refineries & marketing

Risk Ratios

Risk Ratio Nippon India Balanced Advantage Fund – Growth HDFC Balanced Advantage Fund – IDCW
Standard Deviation 6.24 (Low volatility) 9.48 (High volatility)
Beta 0.86 (Low volatility) 1.21 (High volatility)
Sharpe Ratio 0.78 (Better risk-adjusted returns) 1.57 (Better risk-adjusted returns)
Treynor’s Ratio 0.06 (Better risk-adjusted returns) 0.12 (Better risk-adjusted returns)
Jension’s Alpha 1.18 (Better risk-adjusted returns) 9.72 (Better risk-adjusted returns)

Tax Treatment

Both funds are subject to similar tax treatments. If the investments are sold after one year from the purchase date, a long-term capital gains tax of 10% will be applicable if the total long-term capital gain exceeds ₹1 lakh. If sold before one year from the purchase date, a short-term capital gains tax of 15% will be applicable.

Performance Comparison

Period Nippon India Balanced Advantage Fund – Growth HDFC Balanced Advantage Fund – IDCW
1 Week 0.34% 1.98%
1 Month 1.43% 4.67%
3 Month 3.64% 6.58%
6 Month 10.21% 21.76%
YTD 7.23% 12.36%
1 Year 22.36% 42.82%
2 Year 16.38% 30.98%
3 Year 11.98% 24.47%
5 Year 11.78% 18.61%
10 Year 10.87% 15.09%
Since Inception 15.25% 17.62%

 

Disclaimer: The information provided in this article is for educational and informational purposes only. It should not be considered 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.