HDFC Mutual Fund’s HDFC Balanced Advantage Fund Completes 32 Years, Turns ₹1,000 SIP into ₹1.6 Crore

HDFC Balanced Advantage Fund, the oldest scheme from HDFC Mutual Fund, was launched on February 1, 1994 (earlier called HDFC Prudence Fund). Over 32 years, it has delivered strong returns across multiple market cycles, including financial crises and bull runs.

Since launch, the fund has generated about 17.90% CAGR under the regular plan.

Lump Sum Investment Growth

If an investor had put ₹10,000 at launch, the amount would have grown to nearly ₹19.5 lakh, multiplying around 194 - 195 times over 32 years.

This highlights the power of long-term compounding and staying invested.

SIP Returns 

Systematic investing also delivered impressive results:

• SIP return (32 years): 18.43% CAGR
• Monthly SIP amount: ₹1,000
• Final corpus: Around ₹1.6 crore

Even modest monthly investments created significant wealth over time.

Largest Fund in the AMC

The scheme is not just the oldest but also the largest fund in the fund house.

It is the only HDFC Mutual Fund scheme with assets under management (AUM) above ₹1 lakh crore, reflecting strong investor trust.

Risk and Performance Metrics

The fund is classified as Very High Risk.

Key indicators:

• Standard Deviation: 8.73%
• Sharpe Ratio: 1.21
• Sortino Ratio: 2.07
• Beta: 0.85
• Alpha: 4.73

A beta below 1 suggests lower volatility than the broader market, while positive alpha indicates outperformance compared to its benchmark.

Investment Strategy

The fund is an open-ended balanced advantage scheme. It dynamically adjusts its allocation between equity and debt based on market conditions.

Its aim is to provide long-term capital growth along with income, while managing volatility during market downturns.

Portfolio Allocation

Sector Exposure (Equity Portion)

• Financials – 22.71%
• Technology – 10.35%
• Energy & Utilities – 9.44%
• Industrials – 8.25%
• Consumer Discretionary – 5.42%
• Materials – 4.37%
• Healthcare – 4.21%
• Consumer Staples – 2.60%
• Others – Small allocation

The portfolio has a strong focus on financial stocks.

Top Holdings

• HDFC Bank
• ICICI Bank
• Reliance Industries
• State Bank of India
• Bharti Airtel
• Axis Bank
• Infosys
• Larsen & Toubro
• NTPC Limited
• Coal India Limited

Direct Plan Performance

The Direct Plan, launched on January 1, 2013, has delivered 15.24% CAGR since inception.

Also Read: How to Increase SIP Investments After a Pay Raise?

A Word of Caution

While past returns are strong, they do not guarantee future performance. Market conditions change, and balanced advantage funds are still market-linked products.

Investors should evaluate their risk tolerance, time horizon, and overall asset allocation before investing.

Conclusion

Over 32 years, HDFC Balanced Advantage Fund has shown how long-term investing and disciplined SIPs can create significant wealth.

However, investors should focus not just on returns but also on risk, suitability, and long-term financial goals before making investment decisions.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a private recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Mutual Fund investments are subject to market risks, read all scheme-related documents carefully.