HDFC Balanced Advantage Fund Marks 30 Years of Growth, Multiplying Investments with a CAGR of 18%

The fund was launched in February 1, 1994@@, making it one of the longest running mutual funds in India. With an AUM of Rs ~ 73,000 crore (as at December 31, 2023), the fund is amongst the largest actively managed mutual funds in the country.

Bengaluru, 31 January 2024: HDFC Balanced Advantage Fund, an open-ended Balanced Advantage Fund, marks the milestone of its 30-year journey of excellence on 1st February, 2024. With the primary aim of achieving long-term capital appreciation and income through a dynamic allocation between equity and debt investments, the fund has delivered a CAGR of 18% since its inception. Over the course of three decades, an initial investment of Rs 1,00,000 at inception would have grown to Rs. 1.58 crore (158 times). This achievement underscores the fund’s capability to aptly navigate across multiple market cycles, crises, bubbles, etc. while aiming to generate wealth for its investors.

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HDFC Balanced Advantage Fund employs a dynamic investment strategy, actively managing allocations between equity and debt instruments. The approach to equity investments is guided by a broad framework that primarily considers market valuations, including the trailing twelve-month Price to Earnings Ratio of NIFTY 50 and the Earnings Yield/G-Sec Yield Ratio. The fixed income strategy includes diversification across credits, asset types, and tenures, with duration adjusted based on interest rate views. The credit risk is mitigated by prioritizing Safety, Liquidity, and Returns (SLR).

Navneet Munot, MD & CEO, HDFC AMC, said “HDFC Balanced Advantage Fund’s incredible journey of three decades reflects our time-tested investment philosophy and robust processes. On this momentous occasion, we reaffirm our unwavering commitment to delivering enduring value and ensuring long-term prosperity for our investors. If Asset Allocation is the Key, HDFC Balanced Advantage Fund makes it Easy.”

Gopal Agrawal, Senior Fund Manager, HDFC AMC, said, “HDFC Balanced Advantage Fund has successfully navigated through multiple market cycles with its disciplined approach to investing and focus on long term. A strong investment framework enables us to effectively manage its dynamic asset allocation on behalf of our investors. The fund is well-diversified and aims to continue capitalising on India’s growth opportunity.”

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