It is quite definite that the portfolio of the smart investors has chunks of its exposure to balanced funds because the smart one knows the value of diversification. This write-up will cover the various parameters and performance of one of the greatest schemes under balanced fund category, i.e., HDFC Prudence Fund Growth Plan. So, let’s begin!
HDFC Prudence Fund - Introduction
It is an aggressive hybrid category scheme of HDFC Mutual Fund that invests almost 70-75% in the equity and equity related instruments and remaining assets in the debt instruments. A minor proportion of its total assets also gets allocated into cash and money market instruments which amounts 1-2%. It is one of the largest funds in its category and even among all other categories too. The total assets under management of this scheme amount to Rs. 37,836 crore as on February 28, 2018. Currently, Mr. Prashant Jain is managing this scheme along with the assistance of his team, and he is doing a great job by making this fund perform excellently, year after year.
HDFC Prudence Fund - Performance
It is one of the largest equity-oriented hybrid schemes among the peers and has provided excellent growth over the years since its launch. It was launched in the year 1994 and showcased a fantastic growth consistently till 2008. The storm of 2008 ate up almost 50% of its value and pulled it down in terms of performance. The fund remained south-facing in the entire 2008, which was the biggest dip for this fund in terms of value. Although the performance of this scheme remained little shaky in 2011 and 2015, the fund manager tackled the situations soon. However, the long-term performance record of this scheme has remained excellent. The calander year returns of this fund for the year 2017 has been tracked at 27.88%, which was 51.76%, 30.08%, and 84.84% in the year 2014, 2012, and 2009 respectively.
HDFC Prudence Fund G - Strategic Portfolio
As it has been mentioned already in the introduction of the scheme that how it diversifies its total assets into various categories, let’s jump into the details that how further allocation in those categories is made! The fund manager predominantly hunts for the equities of the large and giant companies which could provide a blend of both growth and value. From the box of debt instruments, the manager primarily focuses on picking up the securities which could provide high credit quality and high-interest rate sensitivity. The top three sectors where this scheme invests, i.e., Financial, Engineering, & Construction, together hold almost 45.37% of its total assets. Its top ten holdings accumulate to 47.80% of its total assets, and the total number of stocks under this fund amounts to 88. It means that the fund’s performance majorly depends upon its top holdings. And the fund manager plays a very astute role while choosing especially the top holdings for this scheme.
HDFC Prudence Fund G - The Sudden Change in the AUM
The performance track of this scheme has remained excellent since its launch, and so was the attitude of the investors toward it. In the recent years when the equity market was walking on the shaky ground in 2015, it somehow started letting the trust of the investors down. Searching for the better and safer options, most of the investors landed up on the hybrid funds as they balanced approach to risk and reward. Upon all these, the market in 2016 was also a little more favorable for the hybrid funds. All these resulted in attracting more number of investors to this, and the sizes of some of the hybrid funds became extremely large. Among all other,
HDFC Prudence Fund Regular Plan is the one which has attracted a good number of investors towards it. Its AUM was recorded at Rs. 13,376.30 crores as on December 31, 2016, and increased to Rs. 33,126.70 crore as on December 31, 2017. It has shown an increase of 147.65% in just a period of one year. The latest AUM of this scheme is amounting to Rs. 37,836 crore as on February 28, 2018.
The Final Showdown
HDFC Prudence Fund has managed to showcase excellent run in the previous years. It is also one of the star performers among the category. One must check the details of this scheme to know more for investment purpose.
This article helps the reader to know about the performance, portfolio, & investment strategy of HDFC Prudence Fund.