Hdfc Balanced Advantage Fund Growth Direct Plan

The HDFC Balanced Advantage Fund – Growth-Direct Plan is an excellent investment option for investors who want a balanced and diversified portfolio. The fund’s dynamic allocation between equity and debt instruments helps manage risks and maximise returns. The minimum investment amount is Rs. 5000, and there is no lock-in period, making it a flexible investment option. The fund has delivered consistent returns over the years and is subject to taxation under the Income Tax Act of 1961. Investors should consult their financial advisors before investing in the fund to understand their risk profile and investment objectives.

About HDFC Balanced Advantage Fund – Growth-Direct Plan

HDFC Balanced Advantage Fund – Growth-Direct Plan is a popular investment option for investors who seek a balanced and diversified portfolio. HDFC Asset Management Company, one of India’s leading asset management companies, manages the fund. This piece will discuss various aspects of the HDFC Balanced Advantage Fund – Growth-Direct Plan.

Key Parameters

The key parameters of the HDFC Balanced Advantage fund – Growth – Direct Plan strategically invests in equities and debt instruments. The fund’s expense ratio is 0.96%, and the accumulated AUM of the mutual fund is 47230.12 Crores.

Investment Objective

The primary objective of the HDFC Balanced Advantage Fund – Growth-Direct Plan is to generate long-term capital appreciation by investing in a balanced portfolio of equity and debt instruments. The fund aims to allocate its assets dynamically between equity and debt based on market conditions and valuations. The fund invests at least 65% of its assets in equities and a maximum of 35% in debt instruments.

Minimum Investment and Lock-in Period

The minimum investment and the SIP amount for the HDFC Balanced Advantage Fund – Growth-Direct Plan is Rs.100. The fund has no lock-in period, meaning investors can withdraw their investment anytime. This allows investors to leverage the liquidity this investment instrument provides.

Holdings

The HDFC Balanced Advantage Fund – Growth-Direct Plan has a diversified portfolio with a mix of equity and debt instruments. The fund’s equity portion is invested in stocks across various sectors and market capitalisations. In contrast, the debt portion is invested in fixed-income securities such as government bonds, corporate bonds, and money market instruments. The top 10 stocks that feature in the portfolio of this mutual fund are:

• HDFC Bank
• ICICI Bank
• State Bank of India
• Coal India
• National Thermal Power Corporation
• ITC Limited
• Infosys
• Housing Development Finance Corporation
• Reliance Industry
• Larsen and Toubro Ltd.

Returns

The HDFC Balanced Advantage Fund – Growth-Direct Plan has delivered consistent returns. The fund has given an annualised return of  11.87%% over the last five years, higher than the benchmark indexes. The fund’s returns are affected by market conditions, and investors should keep a long-term investment horizon to get maximum returns.

Taxation

The HDFC Balanced Advantage Fund – Growth-Direct Plan is subject to taxation under the Income Tax Act of 1961. The tax treatment depends on the holding period of the investment. If the asset is held for less than one year, it is considered a short-term capital gain, and the tax rate is 15%. If the investment is held for more than one year, it is regarded as a long-term capital gain, and the tax rate is 10% for gains above Rs. 1 lakh.

HDFC Balanced Advantage Fund – Information

The HDFC Balanced Advantage Fund – Growth – Direct Plan is a lucrative investment scheme that predominantly invests in equity and debt securities to enhance and stimulate the corpus of its investors. It has maintained a solid track record of generating consistent returns and a balanced approach towards asset allocation.