Kindly advise whether or not to maintain holding of HDFC Balanced Benefit Fund for the final three and a half years. Worth of fund is constantly lesser by 7%. Nonetheless, some dividend is being paid recurrently. Say ₹0.230 per unit.
–Subrahmanyam
Balanced Benefit Funds are hybrid funds that spend money on each fairness and debt. The allocation throughout fairness and debt just isn’t mounted and hold altering based mostly in the marketplace outlook and views of the fund administration crew. Balanced Benefit Funds are good for conservative buyers who need to generate increased returns than debt with restricted threat.
Nonetheless, HDFC Balanced Benefit Fund is managed extra aggressively than its friends and doesn’t use derivatives to cut back its fairness publicity under 65% of the corpus. The fund at current has near 70% in fairness whereas the friends had decrease fairness allocation. On the present market degree from a return perspective, this fund would have generated a better return in comparison with friends from the balanced benefit class due to excessive fairness allocation, however it additionally provides extra volatility. You can not examine balanced benefit hybrid funds with fairness diversified funds because the fund can have an inexpensive allocation in debt on a regular basis. The fund has given returns of near 18% p.a. within the final three years which is honest contemplating it’s a balanced fund and market circumstances throughout the interval. In case your funding horizon continues to be long-term even after holding it for 3 years and on the similar time you need to take restricted threat then you might proceed to carry on together with your funding in HDFC Balanced Benefit Fund. If you want to take some further threat and are prepared to present extra time then you possibly can swap into an fairness diversified fund the place your cash will probably be invested in equities solely.
– Reply by Harshad Chetanwala, founder MyWealthGrowth.com
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