HDFC Balanced Fund is an open ended mutual fund investment plan which was launched over 15 years ago in September, 2000. In case of the HDFC Balanced Fund, investments are made in a combined portfolio of equity and equity related instruments along with debt and money market instruments. The investment objective of the scheme aims to increase the valuation of assets while creating a source of current income.
Investments for this scheme are usually made according to the following ratios:
- Up to 60% of the net assets are invested in equities and equity related instruments. Up to 20% normal deviation is expected from this allocation amount. Which means this ratio may go up to 80% or may come down to 40% depending upon various market factors. In equity and equity related instruments up to 40% can be invested into foreign securities.
- The remaining 40% of the net assets is kept for investing in debt securities including securitised debt along with various other money market instruments. This ratio however has the possibility of around 30% normal deviation which means the minimum investment can go down to 10% while the maximum allocation can go up to 70%. Investments in foreign securitised debt are not allowed under this category.
- While the investments made in equity and equity related instruments have a medium to high risk profile, investments in debt securities and money related instruments have a low to medium risk profile.
- If the scheme engages in stock lending, it is bound to adhere to the below limits:
- It cannot deploy more than 25% of the net assets of the scheme into stock lending.
- It cannot deploy more than 5% of the net assets of the scheme to a single approved intermediary in stock lending.