Investment Strategies
- HDFC Balanced Advantage Fund invests at least 65% of its portfolio in equities (including hedged and unhedged equity derivatives).
- The scheme aims to create returns with dynamic asset allocation between equity and debt.
- It uses valuations, assessment of macro-economic scenarios and a bottom-up approach for stock selection.
- The equity portfolio of the scheme is actively managed as per the undermentioned strategies –
- The fund is free to invest across sectors or market capitalization without any SEBI-imposed upper or lower limits.
- The fund mitigates risk by carefully appropriating the size of its exposures.
- The stock selection is based on quality assessment, valuations and earnings outlook.
- The debt component of the fund’s portfolio is actively managed as per the undermentioned strategies–
- Investments are spread across credit spread, asset classes and tenures.
- The duration profile of the portfolio is based on the interest rate outlook.
- To manage credit risk, the fund follows the principle of Safety, Liquidity and Returns (SLR) in that order.
Who Should Invest
- Investors looking for growth potential of equity but with relatively lower volatility, as this fund also invests in debt components.
- Those who are seeking to invest in funds following a dynamic asset allocation strategy between equity and debt asset classes.