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There are a number of differences between HDFC Balanced Advantage Fund and HDFC Top 100 Fund. These differences exist in spite of both the schemes forming part of the same category and belonging to the same fund house. These schemes are a part of Large cap funds. Large-cap funds are the Mutual Fund schemes that invest their accumulated money in stocks of companies having a Market capitalization of more than INR 10,000 Crores. These companies are huge in terms of market capitalization, product size, and human Capital. Large-cap companies are also known as bluechip companies and are considered as the market leaders in their respective. Though large-cap funds are of the same category nevertheless; there are numerous differences between them. So, let’s understand the differences between these schemes through this article.
HDFC Balanced Advantage Fund's (earlier known as HDFC Growth Fund) investment objective is to attain capital appreciation from a Portfolio of securities predominantly consisting of equity and equity-related securities. HDFC Balanced Advantage Fund uses S&P BSE Sensex and Nifty 50 Index as its primary and additional benchmark to build its basket of assets. Mr. Srinivas Rao Ravuri and Mr. Rakesh Vyas are the joint fund managers of HDFC Balanced Advantage Fund. Based on the Asset Allocation objective of the scheme, HDFC Balanced Advantage Fund invests around 80-100% of its accumulated fund money in equity and equity-related instruments and the remaining portion in fixed Income and money market instruments. The scheme follows five basic principles of investment approach that includes focussing on long-term, maintain a balanced outlook on the market, and disciplined approach to selling.
HDFC Top 100 Fund (earlier known as HDFC Top 200 Fund) is offered and managed by HDFC Mutual Fund under the large-cap category. The scheme invests a significant stake of its corpus in the stock of companies forming part of BSE 200 Index. The scheme was launched on October 11, 1996. HDFC Top 100 Fund uses S&P BSE 200 Index as its primary index and S&P BSE Sensex as its additional benchmark to construct its portfolio. Some of the constituents that form part of the Top 10 holdings of HDFC Top 100 Fund include HDFC Bank Limited, Infosys Limited, Larsen & Toubro Limited, Reliance Industries Limited, and State Bank of India. Based on the asset allocation objective of the scheme, it invests up to 100% of its fund in equity and equity-related instruments. HDFC Top 100 Fund is jointly managed by Mr. Rakesh Vyas and Mr. Prashant Jain.
The numerous parameters on which HDFC Balanced Advantage Fund and HDFC Top 100 Fund differ are classified into four section. These sections are explained below as follows.
It is the first section in the comparison that includes comparable parameters such as current NAV, Fincash Rating, and scheme category. The comparison of scheme category shows that both the schemes belong to the Equity Large Cap category. On the Basis of Fincash Rating, it can be said that, HDFC Balanced Advantage Fund is a 4-Star scheme and HDFC Top 100 Fund is a 3-Star scheme. The comparison of current NAV also shows a difference between both the schemes. As on May 02, 2018, the NAV of HDFC Top 100 Fund was around INR 447 and of HDFC Balanced Advantage Fund was approximately INR 185. The comparison of the basics section is tabulated as follows.
Parameters Basics NAV Net Assets (Cr) Launch Date Rating Category Sub Cat. Category Rank Risk Expense Ratio Sharpe Ratio Information Ratio Alpha Ratio Benchmark Exit Load HDFC Balanced Advantage Fund
Growth
Fund Details ₹492.758 ↑ 1.44 (0.29 %) ₹94,866 on 31 Oct 24 11 Sep 00 ☆☆☆☆ Hybrid Dynamic Allocation 23 Moderately High 1.43 2.5 0 0 Not Available 0-1 Years (1%),1 Years and above(NIL) HDFC Top 100 Fund
Growth
Fund Details ₹1,088.15 ↑ 3.16 (0.29 %) ₹36,467 on 31 Oct 24 11 Oct 96 ☆☆☆ Equity Large Cap 43 Moderately High 1.67 1.72 1.2 0.34 Not Available 0-1 Years (1%),1 Years and above(NIL)
It is the second section in the comparison of the schemes that analyzes the differences in the Compounded Annual Growth Rate or CAGR returns of both the schemes. These CAGR returns are compared at different intervals such as 1 Month Return, 6 Month Return, 3 Year Return, and 5 Year Return. On the basis of performance, it can be said that in certain instances, HDFC Top 100 Fund leads the race and in others, HDFC Balanced Advantage Fund has performed better. The table given below compares the differences in the performance section.
Parameters Performance 1 Month 3 Month 6 Month 1 Year 3 Year 5 Year Since launch HDFC Balanced Advantage Fund
Growth
Fund Details -3.3% -2.7% 4.2% 25% 20.5% 19.7% 18.4% HDFC Top 100 Fund
Growth
Fund Details -6.1% -4.9% 4.3% 23.2% 15.9% 16.9% 19%
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Being the third section in the comparison, it analyzes the differences in the absolute returns of both the schemes for a particular year. The comparison of absolute returns also states that for certain years, HDFC Balanced Advantage Fund has done well and for other years, HDFC Top 100 Fund has done better. The table given below summarizes the comparison of yearly performance section.
Parameters Yearly Performance 2023 2022 2021 2020 2019 HDFC Balanced Advantage Fund
Growth
Fund Details 31.3% 18.8% 26.4% 7.6% 6.9% HDFC Top 100 Fund
Growth
Fund Details 30% 10.6% 28.5% 5.9% 7.7%
Being the last section in the comparison, it includes comparable elements such as AUM, minimum SIP and lumpsum investment, and much more. The minimum SIP and lumpsum investment are same for both the schemes. The minimum SIP amount for both the schemes is INR 500 while the lumpsum amount for both the schemes is INR 5,000. However, there is a significant difference in the AUM of both the schemes. As on March 31, 2018, the AUM of HDFC Top 100 Fund was approximately INR 14,350 Crores and of HDFC Balanced Advantage Fund was around INR 1,129 Crores. The comparison of other details section is as follows.
Parameters Yearly Performance 2023 2022 2021 2020 2019 HDFC Balanced Advantage Fund
Growth
Fund Details 31.3% 18.8% 26.4% 7.6% 6.9% HDFC Top 100 Fund
Growth
Fund Details 30% 10.6% 28.5% 5.9% 7.7%
HDFC Balanced Advantage Fund
Growth
Fund Details Growth of 10,000 investment over the years.
Date Value 31 Oct 19 ₹10,000 31 Oct 20 ₹8,901 31 Oct 21 ₹14,022 31 Oct 22 ₹15,913 31 Oct 23 ₹18,913 31 Oct 24 ₹25,111 HDFC Top 100 Fund
Growth
Fund Details Growth of 10,000 investment over the years.
Date Value 31 Oct 19 ₹10,000 31 Oct 20 ₹8,718 31 Oct 21 ₹14,032 31 Oct 22 ₹15,013 31 Oct 23 ₹17,031 31 Oct 24 ₹22,572
HDFC Balanced Advantage Fund
Growth
Fund Details Asset Allocation
Asset Class Value Cash 19.39% Equity 50.78% Debt 29.83% Equity Sector Allocation
Sector Value Financial Services 22.26% Industrials 9.44% Energy 7.88% Utility 5.23% Technology 4.45% Health Care 4.12% Consumer Cyclical 3.85% Consumer Defensive 2.96% Communication Services 2.57% Basic Materials 1.97% Real Estate 1.33% Debt Sector Allocation
Sector Value Cash Equivalent 19.39% Government 17.27% Corporate 12.56% Credit Quality
Rating Value AA 2.33% AAA 97.67% Top Securities Holdings / Portfolio
Name Holding Value Quantity HDFC Bank Ltd (Financial Services)
Equity, Since 31 Mar 22 | HDFCBANK6% ₹6,160 Cr 35,564,751 ICICI Bank Ltd (Financial Services)
Equity, Since 31 Oct 09 | ICICIBANK4% ₹3,537 Cr 27,787,724 NTPC Ltd (Utilities)
Equity, Since 31 Aug 16 | 5325553% ₹3,140 Cr 70,855,915
↓ -1,000,000 State Bank of India (Financial Services)
Equity, Since 31 May 07 | SBIN3% ₹3,109 Cr 39,455,000
↑ 722,250 Coal India Ltd (Energy)
Equity, Since 31 Jan 18 | COALINDIA3% ₹2,922 Cr 57,282,114 7.38% Govt Stock 2027
Sovereign Bonds | -3% ₹2,773 Cr 272,581,800 Infosys Ltd (Technology)
Equity, Since 31 Oct 09 | INFY3% ₹2,497 Cr 13,314,298 Larsen & Toubro Ltd (Industrials)
Equity, Since 30 Jun 12 | LT2% ₹2,379 Cr 6,473,583 07.18 Goi 2033
Sovereign Bonds | -2% ₹2,348 Cr 228,533,300 ITC Ltd (Consumer Defensive)
Equity, Since 30 Apr 18 | ITC2% ₹2,278 Cr 43,955,326
↑ 1,171,200 HDFC Top 100 Fund
Growth
Fund Details Asset Allocation
Asset Class Value Cash 3.05% Equity 96.95% Equity Sector Allocation
Sector Value Financial Services 33.24% Consumer Cyclical 10.75% Consumer Defensive 8.13% Technology 7.8% Energy 7.69% Industrials 7.56% Health Care 6.38% Utility 6.12% Communication Services 5.27% Basic Materials 3.33% Real Estate 0.67% Top Securities Holdings / Portfolio
Name Holding Value Quantity ICICI Bank Ltd (Financial Services)
Equity, Since 31 Dec 05 | ICICIBANK11% ₹3,882 Cr 30,040,474 HDFC Bank Ltd (Financial Services)
Equity, Since 31 Jan 10 | HDFCBANK10% ₹3,493 Cr 20,126,319 NTPC Ltd (Utilities)
Equity, Since 30 Jun 15 | 5325556% ₹2,231 Cr 54,669,743 Larsen & Toubro Ltd (Industrials)
Equity, Since 31 Aug 06 | LT6% ₹2,109 Cr 5,822,954 Bharti Airtel Ltd (Communication Services)
Equity, Since 30 Apr 20 | BHARTIARTL5% ₹1,923 Cr 11,921,785 Infosys Ltd (Technology)
Equity, Since 31 Aug 04 | INFY4% ₹1,578 Cr 8,979,648 Axis Bank Ltd (Financial Services)
Equity, Since 31 Jan 07 | 5322154% ₹1,566 Cr 13,502,714
↑ 1,800,000 ITC Ltd (Consumer Defensive)
Equity, Since 31 Jan 03 | ITC4% ₹1,549 Cr 31,691,145 Reliance Industries Ltd (Energy)
Equity, Since 31 Mar 06 | RELIANCE4% ₹1,279 Cr 9,601,236
↓ -1,200,000 Coal India Ltd (Energy)
Equity, Since 30 Sep 17 | COALINDIA3% ₹1,246 Cr 27,557,721
Therefore, based on the above-mentioned pointers, it can be said that there are a number of differences between both the schemes on account of numerous parameters. As a result, individuals should be careful while Investing in any of the schemes. They should ensure that the scheme matches their investment objectives. Additionally, they should also ensure that they understand the modalities of the scheme completely. If required, individuals can also consult an opinion of a financial advisor. Following these steps will help individuals to attain their objectives on time along with ensuring that their investment is safe.