HDFC BAF hits ₹1Lcr AUM
Introduction
When a HDFC Balanced Advantage fund crosses over the 1 lakh crore AUM mark, it is a sign that some special story is taking place. HDFC Balanced Advantage Fund (HDFC BAF) has achieved this milestone recently, becoming one of the largest mutual funds in India.
So, what does this fund do that investors seem to be unable to get their fill of it? Let us find out in detail.
HDFC Balanced Advantage Fund: A brief history
Starting Date: September 11, 2000
Fund House: HDFC Mutual Fund (a joint venture of HDFC Ltd. & Aberdeen)
Legacy Status: This is probably one of the oldest schemes of the HDFC portfolio.
Since its birth less than a year after HDFC MF, HDFC BAF has been through the cycles in the market, creating its credibility and track record that few others can compete.
Key Performance Metrics
| Metric | Value |
|---|---|
| Current NAV | ₹517.40 (Regular Plan) |
| AUM | ₹100,299.29 Crore |
| Since Inception Return | 5,074.03% (Absolute) / 17.26% p.a. |
| 1-Year Return | 5.87% (Absolute) |
| 3-Year Return | 90.34% (Absolute) / 23.91% p.a. |
| 5-Year Return | 205.15% (Absolute) / 24.97% p.a. |
| 10-Year Return | 296.03% (Absolute) / 14.74% p.a. |
Annualized Returns Comparison (p.a.)
Investment Strategy & Asset Allocation
Asset Allocation Breakdown
HDFC BAF follows a dynamic asset allocation model, flexing between equity and debt to ride market highs and cushion during downturns.
- Equity (66.87%): Large Cap (44.80%), Mid Cap (5.32%), Small Cap (4.76%), Other Equity (11.99%)
- Debt (27.49%): G-Sec (8.96%), Low-Risk Corporate & Credit (18.10%)
- TREPS / Cash: 3.37%
- InvITs / REITs: 1.40%
- Net Receivables: 0.87%
Why Did AUM Cross ₹1 Lakh Crore?
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Good Brand Trust
This gives strong investor confidence that was achieved through two decades of performance.
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Dynamic Asset Allocation
This faculty of the fund to trim its equity positions in over-valued markets and expand them when prices are good has helped keep volatility low and maximized returns.
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Steady Track Record
The returns of ~17.3 percent each year since inception are attractive to both veteran and amateur investors.
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High Liquidity & Large-Cap Driven
Holding blue-chip stocks, investors are assured of the ability to get in and out of their investments without a major effect on NAV.
Frequently Asked Questions (FAQs)
HDFC Balanced Advantage Fund (HDFC BAF) is a hybrid mutual fund that ensures the level of equity/debt is dynamically changed to target balanced growth and risk, keeping in view the market valuation.
The fund moves money between equity and debt, or cash equivalents, depending on whether valuations seem cheap or expensive, which can average returns between business cycles.
Investors with moderate risk tolerance who are interested in credible stability and long-term capital appreciation. It's ideal for any investor who wishes to use a "set and forget" investment procedure without making regular modifications to their portfolio.
Lumpsum: ₹5,000
Systematic Investment Plan (SIP): ₹1,000 per month
The full details are contained in the latest Scheme Information Document (check it here for updates).
- Volatility is minimized by dynamic rebalancing.
- High liquidity is guaranteed by large AUM.
- Objectively diversified in equities, debt, REITs/InvITs, and cash.
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