HDFC Prudence Fund(G)

Performance

HDFC Balanced Advantage Fund - Growth Option is an open-ended balanced advantage fund offered by HDFC Mutual Fund. It is a merger between HDFC Prudence Fund and HDFC Growth Fund and is an ideal investment option for those who want income and capital appreciation in the long term.

Investment Objective of HDFC Balanced Advantage Fund - Growth Option

HDFC Balanced Advantage Fund - Growth Option aims to generate income and capital growth in the long term through investment in a dynamic combination of debt and equity investments.

Key Features of HDFC Balanced Advantage Fund - Growth Option

Here are some of the key features of HDFC Balanced Advantage Fund - Growth Option:

Investment Amount for HDFC Balanced Advantage Fund - Growth Option

Asset Allocation for HDFC Balanced Advantage Fund - Growth Option

Who can Invest in HDFC Balanced Advantage Fund - Growth Option?

The following entities can make investments in HDFC Balanced Advantage Fund - Growth Option:

• Resident Indian citizens who are at least 18 years of age
• Hindu Undivided Families in the name of the Karta
• Legal guardians or parents on behalf of minors
• Persons of Indian Origin (POIs) and Non-Resident Indians (NRIs)
• Limited Liability Partnerships and partnership firms
• Charitable, private, or religious trusts
• Companies, Public Sector Undertakings, corporate bodies, Body of Individuals, Association of Persons, and societies that are registered under the Societies Registration Act, 1860
• Mutual funds or Alternative Investment Funds that have been registered with the Securities and Exchange Board of India
• Financial institutions and banks
• Industrial and scientific research organisations
• Foreign Portfolio Investors (FPIs) and Foreign Institutional Investors (FIIs) registered with the Securities and Exchange Board of India
• Navy, Air Force, Army and other paramilitary units
• Multilateral Financial Institutions or corporate bodies or Bilateral Development Corporation Agencies formed outside the country with the permission of the Reserve Bank of India or the Indian Government
• Sponsor, trustee or Asset Management Company or their associates
• Other schemes of the fund house provided they meet the conditions prescribed by the Securities and Exchange Board of India
• Any other category of investors if they are authorised to invest in units of the scheme

NAV Disclosure and Benchmark for HDFC Balanced Advantage Fund - Growth Option

The NAV of HDFC Balanced Advantage Fund - Growth Option is required to be calculated regularly and declared in at least two national newspaper by 9:00 p.m. on every working day on the website of the fund house as well as the website of the Association of Mutual Funds in India.

The following formula is used to calculate the NAV of HDFC Balanced Advantage Fund - Growth Option:

(Fair Value or Market Value of the Scheme’s investment + Current Assets - Current Liabilities and Provisions) / Number of units outstanding under the scheme

Benchmark Index of HDFC Balanced Advantage Fund - Growth Option:

The benchmark adopted by HDFC Balanced Advantage Fund - Growth Option is the Nifty 50 Hybrid Composite Debt 65:35 Index.

HDFC Balanced Advantage Fund - Growth Option Fund Manager

HDFC Balanced Advantage Fund - Growth Option has been managed by Prashant Jain for almost 15 years. Mr. Jain has more than 27 years of experience in research and fund management in the mutual fund industry. He also manages other schemes of the fund house, such as HDFC Equity Fund, HDFC Top 100 Fund, HDFC Hybrid Debt Fund, HDFC MF Monthly Income Plan, etc. HDFC Balanced Advantage Fund is co-managed by Rakesh Vyas, who has been in charge of the scheme for almost six years now. He has more than 14 years of work experience and manages other schemes of the fund house, such as HDFC Arbitrage Fund, HDFC Money Market Fund, HDFC Children’s Gift Fund, HDFC Banking and PSU Debt Fund, HDFC Corporate Bond Fund, etc.

Investment Restrictions of HDFC Balanced Advantage Fund - Growth Option

The following are some of the major investment restrictions of HDFC Balanced Advantage Fund - Growth Option:

• The scheme is restricted from parking funds in excess of 20% in short-term deposits of sponsor and associate scheduled commercial banks.
• The scheme can enter into transactions for government securities only in the dematerialised form.
• The mutual fund is not allowed to advance loans for any reason unless expressly provided under the Mutual Fund regulations prescribed by the Securities and Exchange Board of India.
• The scheme is not allowed to make investments in excess of 10% of its Net Asset Value in debt securities issued by a single issuer if they are rated not below investment grade by a credit rating agency.
• The scheme is not allowed to invest over 10% of its Net Asset Value in the units of InvITs and REITs, and not over 5% in the units of InvITs and REITs issued by a single issuer.

Dividend Policy of HDFC Balanced Advantage Fund - Growth Option

The right to declare dividends rests with the Trustee under the scheme’s dividend option. The declaration of dividends will depend on the availability of distributable surplus, and if dividends are declared, they shall be paid to unitholders if their names are present in the Register of Unitholders on the record date.

Other Facilities Offered by HDFC Balanced Advantage Fund - Growth Option

The following are some of the other key facilities offered by HDFC Balanced Advantage Fund - Growth Option:

• SIP Top-Up Facility: This facility offers investors an option to raise the SIP instalment amount by a fixed sum at predetermined intervals of time.
• Flex Systematic Investment Plan: Flex SIP as it is also called, this facility allows investors to make investments at pre-specified intervals of time if they have chosen the Growth Option.
• Switching Option: Investors who hold units in HDFC Balanced Advantage Fund - Growth Option can switch all or part of their holdings to another scheme offered by HDFC Mutual Fund, or from one plan of the scheme to another.

Why you should invest in HDFC Balanced Advantage Fund - Growth Option

HDFC Balanced Advantage Fund - Growth Option is a good investment option for those who seek income and capital appreciation in the long term. The risk associated with the investment is moderately high, but the returns are also quite attractive, making the scheme a worthwhile option for long-term benefits.

GST rate of 18% applicable for all financial services effective July 1, 2017.