HDFC Balanced Fund has been combined with HDFC Premier Multi-Cap Fund to form HDFC Hybrid Equity Fund. Due to re-categorisation of mutual fund schemes by SEBI, the corpus of both the funds will be combinely managed by HDFC Hybrid Equity Fund. The investment strategy and aims of the newly formed fund are very much similar to that of the HDFC Balanced Fund. Hence, investors of the balanced fund can stay invested or continue their SIP, but the investors of HDFC Premier Multicap Fund need to rethink their investment goals and revamp the investments if required. The fund is placed in the newly formed aggressive hybrid category which was previously popular as the balanced fund.
HDFC Hybrid Equity Fund (G) Category
It is an equity oriented hybrid fund which is also known as an aggressive hybrid fund. It has a majority of corpus allocation in the equity instruments which gather high returns with a slightly elevated risk. To compromise the risk factor, a partial corpus is invested in debt instruments which are less riskier and provide decent and stable growth. The combination of equity and debt with equity in the majority is beneficial as well as secure. Hence, these funds are opted by a majority of new investors as well as experienced investors to get long-term capital appreciation.
Performance of the Fund
HDFC Balanced Fund (G) has been a consistent performer regardless of the market trends in equity. It has performed well in positive as well as the adverse market. It has generated an annualised return of 20.01% in last 5 years and 16.36% in the last 10 years while the benchmark returns were 13.86% and 10.66% for the last 5 and 10 years, respectively. The category average returns are also far behind that of HDFC Balanced Fund which will now be called as HDFC Hybrid Equity Fund. (Data as of 29th July 2018)
HDFC Hybrid Equity Fund will be managed solely by Mr Chirag Setalvad who is the senior fund manager at HDFC Mutual Fund. He holds a degree of B.Sc and MBA from the University of North Carolina. Before joining HDFC Mutual Fund, he has worked with New Vernom Advisory Services Ltd, HDFC AMC, ING Barings NV. He was the fund manager of HDFC Balanced Fund. Apart from it he also handles HDFC Children’s Gift Fund, HDFC Multi-Asset Fund, HDFC Mid-cap Opportunities Fund, HDFC Small-cap Fund, HDFC Retirement Savings Fund.
Investment Style and Portfolio
The investment style in the equity instruments is a mixture of growth and value-based investing. The fund manager targets the stocks with high potential for growth which can be bought at a reasonable price and can be sold later to generate a better return. The debt instruments comprise government loans and securities with SOV ratings. The fund manager also buys bonds and debentures of AAA ratings. The average maturity period of the instruments is 4.73 years. (Data as of 29th July 2018)
The fund is suitable for the investors who like to involve the equity as well as debt instruments in their portfolio. It offers a stable and consistent return through a low-risk portfolio. The fund is also suitable for the new investors who are uncertain of the risk they can bear. Connect with the official website of MySIPonline to invest in this fund today and get the latest details regarding the fund.