Hdfc Balanced Advantage Fund Idcw Reinvestment

About HDFC Balanced Advantage Fund – IDCW Reinvestment

The HDFC Balanced Advantage Fund – IDCW Reinvestment is a type of hybrid mutual fund that has been in operation since June 1, 2018. The fund is managed by a team of experienced professionals, including Srinivasan Ramamurthy, Gopal Agrawal, Anil Bamboli, Arun Agarwal, Priya Ranjan, and Nirman Morakhia. One of the key benefits of this fund is that it offers investors the advantage of diversification.

Key Parameters

1. As of March 22, 2023, the net asset value (NAV) of HDFC Balanced Advantage Fund Direct Plan Reinvestment Inc Dist cum Cap Wdrl Opt is ₹32.976.
2. The assets under management (AUM) of HDFC Balanced Advantage Fund Direct Plan Reinvestment Inc Dist cum Cap Wdrl Opt were ₹51042 Cr as of January 31, 2023, which is higher than the average for other similar mutual funds in its category.
3. The fund has an expense ratio of 0.88%, which is the amount charged by the fund to cover its operational expenses.

Returns on HDFC Balanced Advantage Fund – IDCW Reinvestment

The HDFC Balanced Advantage Fund – IDCW Reinvestment Plan has provided a compounded annual growth rate (CAGR) return of 12.51% since its inception. In the past 1 year and 3 years, the fund has delivered a CAGR return of 13.79% and 29.31%, respectively. This indicates that the fund has performed well and provided good returns to its investors over the years.

Holdings

The HDFC Balanced Advantage Fund – IDCW Reinvestment has invested its funds mainly in various sectors such as government, financial services, corporate, cash equivalent, energy, industrial, utilities, tech, consumer defensive, consumer cyclical, health, communication, real estate, and basic materials. This diversification across different sectors helps spread the risk and improve the fund’s overall performance.

Taxation

Since HDFC Balanced Advantage Fund – IDCW Reinvestment is a dynamic asset allocation mutual fund, its taxation depends on the type of asset allocation it follows. If the fund invests more than 65 per cent of its assets in equity instruments, it is considered equity-oriented. Short-term capital gains (less than a year) are taxable at 15 per cent, while long-term capital gains (more than a year) are taxable at 10 per cent, excluding indexation benefit. Gains up to Rs 1 lakh are exempt from taxation for long-term capital gains of over 12 months.

On the other hand, if the fund invests more than 65 per cent of its assets in debt instruments, it is considered debt-oriented. Short-term capital gains (less than 3 years) are taxed at the investor’s income slab rate, while long-term capital gains (more than 3 years) are taxable at 20 per cent along with the indexation benefit. Dividends received from the fund are always taxed at the investor’s slab rate.

Investment Objective of HDFC Balanced Advantage Fund – IDWC Reinvestment

The investment objective of HDFC Balanced Advantage Fund – IDCW Reinvestment is to generate long-term capital appreciation or income by investing in a dynamic mix of equity and debt instruments. However, it is important to note that there is no guarantee that the fund will achieve its investment objective.

Minimum Investment and Lockin Period

Investors can start investing in the fund with a minimum amount of INR 100 for lump sum payments and INR 0 for SIP. The fund has no lock-in period, meaning investors can redeem their investments anytime.