HDFC Balanced Advantage Fund - Growth Plan

About HDFC Balanced Advantage Fund 

It is an open-ended balanced advantage fund that aims for long-term capital appreciation by investing in a mix of debt and equity investments. Thus, it offers the stability of debt instruments with the high returns potential of equity investments. The fund manager decides the asset allocation between different options as per the prevailing economic and market conditions. 

Fund Manager 

The fund has been managed by Mr. Srinivasan Ramamurthy and Mr. Gopal Agrawal since 29th July 2022. Both of them have over 15 years of experience in equity research and fund management. 

Other Funds by HDFC Mutual Fund

HDFC Small Cap Fund – Growth Option

HDFC Retirement Savings Fund – Equity Plan – Growth Option

HDFC Large and Mid Cap Fund – Growth Option

HDFC Mid-Cap Opportunities Fund – Growth Plan 

HDFC Flexi Cap Fund – Growth Plan

HDFC Focused 30 Fund – Growth Plan

HDFC Multi-Asset Fund – Growth Option

Investment Objective

The investment objective of the scheme is to provide income/long-term capital appreciation to the investors by dynamically allocating its assets in a mix of equity & debt securities as per the market conditions. 

Benchmark

The Benchmark of the scheme is NIFTY 50 Hybrid Composite Debt 65:35 TRI. 

Investment Details

SIP Details

Loads

Entry Load: Nil

Exit Load:

If up to 15% of the units are redeemed or switched out within 1 year- Nil

If units in excess of 15% are redeemed or switched out within 1 year- 1%

If units are redeemed or switched out after 1 year- Nil

Suitability

HDFC Balanced Advantage Fund is suitable for investors with a moderately high-risk appetite & looking to invest for a period of 5 years & above. 

Taxation:

As the fund will have a major allocation in equity securities, HDFC Balanced Advantage Fund has the taxability of an equity-oriented mutual fund scheme. Following taxation is applicable:

• If the units are sold after 1 year, then the gains on investments are treated as Long Term Capital Gains (LTCG). LTCG of up to Rs 1.25 lacs in a financial year is tax-free and above that, it is taxed at the rate of 12.5% without the benefit of indexation.
• If the units are sold within 1 year, then the gains are treated as Short Term Capital Gains (STCG) and are taxed at the rate of 20%.

HDFC Balanced Advantage Fund’s Asset Allocation

Under normal conditions, the pattern of asset allocation is as follows:

Who should invest ?

Balanced Advantage Funds also known as Dynamic Asset Allocation Funds are those hybrid mutual funds (equity-oriented) which have the flexibility to make dynamic allocations in equity & debt securities depending upon the market & economic conditions. The fund manager may even go on allocating all its assets in equities if he finds investments in equity markets favourable. Also, allocations to debt securities could be higher if equity seems to be volatile. The scheme aims to build a diversified equity portfolio of stocks across sectors & market capitalizations.

Investments in HDFC Balanced Advantage Fund can be made by investors who want to invest in funds with lower volatility than pure equity funds. The flexibility to dynamically move between equities & debt securities is expected to generate higher than pure debt funds' returns. 

Investors looking to invest in hybrid funds with a diversified portfolio & more stability than pure equity funds could consider investments in this fund. The fund can be a good investment for a moderate investor's portfolio.

Also Read: Steps to Become Mutual Fund Advisor

Eligibility 

The following people are eligible for investing in this scheme:

• Indian Resident Adults (single holder or on a joint basis)
• Hindu Undivided Family
• Partnership entities
• Limited Liability Partnership units
• Minor through parent or a legal guardian
• Sole Proprietor
• Corporates, PSUs & others.
• NRIs/POIs/OCIs
• Banks & Financial Institutions
• Religious & Charitable Trusts
• Defense & paramilitary units
• Foreign Portfolio Investors
• Pension/Provident/Gratuity Funds
• Trustee, AMCs or Sponsors
• Other schemes of HDFC or other mutual funds
• Alternative Investment Funds
• Others

How to invest?

You can invest in HDFC Balanced Advantage Fund through any AMFI distributor, AMC, banks, or third party platforms. If you need any help with your investments, you can reach out to our ZFunds Experts on Whatsapp - 7217746224.

Frequently Asked Questions about HDFC Balanced Advantage Fund

Q. Is there any lock-in period for HDFC Balanced Advantage Fund ? 

A. No, there is no lock-in period for investments in HDFC Balanced Advantage Fund. However, there is an exit load. In case you redeem or switch out of more than 15 percent of your investment in HDFC Balanced Advantage Fund within one year of allocation of mutual fund units, then an exit load of 1 percent shall be applicable. 

Q. What are the minimum investment requirements for HDFC Balanced Advantage Fund? 

A. You can initially invest a minimum of INR 5000 as a lump sum, and any additional amount of minimum INR 1000 in your subsequent lump sum investments in HDFC Balanced Advantage Fund. In addition to that, you can also start an SIP or systematic investment plan with INR 500 per month with any additional amount in the multiples of 1. 

Q. What is the expense ratio for HDFC Balanced Advantage Fund? 

A. The expense ratio – the fee charged by the mutual fund company towards the maintenance of mutual funds schemes – for HDFC Balanced Advantage Fund is 1.54 percent as on 24th September 2022. Moreover, the net asset value or NAV currently stands at INR 307.4. 

More HDFC Mutual Funds:

HDFC Small Cap Fund
HDFC Equity Fund Growth Option
HDFC Top 100 Fund - Growth Option
HDFC Hybrid Equity Fund
HDFC Mid-Cap Opportunities Fund
HDFC Liquid Fund Growth
HDFC Short Term Debt Fund
HDFC TaxSaver Growth Plan
HDFC Low Duration Fund
HDFC Ultra Short Term Fund