ICICI Prudential Balanced Advantage Fund Vs HDFC Hybrid Equity Fund

ICICI Prudential Balanced Advantage Fund and HDFC Hybrid Equity Fund both belong to the same category of Balanced Fund. Balanced Funds invest their corpus in both equity and fixed Income instruments in a pre-determined proportion that can change over time. This scheme is good for individuals seeking Capital Gain over long-term along with regular income. Balanced Funds invest a minimum of 65% or more of its accumulated money in equity and equity-related instruments and the remaining in Fixed Income instruments. It is a good investment option for medium and long-term tenure. Though ICICI Prudential Balanced Advantage Fund and HDFC Hybrid Equity Fund both belong to balanced fund category, yet; there exist differences between them. So, let us understand the differences between both the scheme based on various parameters.

ICICI Prudential Balanced Advantage Fund

ICICI Prudential Balanced Advantage Fund is a part of ICICI Prudential Mutual Fund. This open-ended balanced fund scheme was launched on December 30, 2006. ICICI Prudential Balanced Advantage Fund strives to attain growth along with safety by Investing in both equity as well as debt instruments. ICICI Prudential Balanced Advantage Fund is jointly managed by Mr. Sankaren Naren, Mr. Rajat Chandak, Mr. Ihab Dalwai, and Mr. Manish Banthia. Out of them, Mr. Manish Banthia looks after the fixed income investments, while the others take care of the equity investments. As on March 31, 2018, some of the top holdings of ICICI Prudential Balanced Advantage Fund included Eicher Motors Limited, Maruti Suzuki India Limited, Ambuja Cements Limited, and Godrej Properties Limited.

HDFC Balanced Fund (Erstwhile HDFC Hybrid Equity Fund)

HDFC Hybrid Equity Fund is an open-ended balanced fund scheme offered by HDFC Mutual Fund. HDFC Premier Multi-Cap Fund and HDFC Balanced Fund merged to form HDFC Hybrid Equity Fund. The scheme was incepted in the year 2000. The objective of HDFC Hybrid Equity Fund is to attain Capital appreciation along with regular income. This objective is achieved by investing in a Portfolio of equity and fixed income instruments in a predetermined proportion. HDFC Hybrid Equity Fund is managed by Mr. Chirag Setalvad and Mr. Rakesh Vyas. As on March 31, 2018, some of the top components of HDFC Balanced Fund included HDFC Bank Limited, Larsen & Toubro Limited, Axis Bank Limited, Voltas Limited, and Aurobindo Pharma Limited. HDFC Hybrid Equity Fund uses CRISIL Balanced Fund index as its primary benchmark and Nifty 50 as its additional benchmark to construct its portfolio.

ICICI Prudential Balanced Advantage Fund Vs HDFC Hybrid Equity Fund

Though ICICI Prudential Balanced Advantage Fund and HDFC Hybrid Equity Fund both belong to the same category yet, there exists a difference between them. So, let us understand the differences between both the schemes using different elements that are divided into four sections, namely, basics section, performance section, yearly performance section, and other details section.

Basics Section

It is the first section in the comparison of the schemes whose elements include current NAV, scheme category, and Fincash Rating. To begin with the Fincash Rating, it can be said that, ICICI Prudential Balanced Advantage Fund is rated as 3-Star and HDFC Hybrid Equity Fund is rated as 5-Star. The comparison of current NAV reveals that is a significant difference between the NAV of both the schemes. As on April 20, 2018, the NAV of ICICI Prudential Mutual Fund’s scheme was approximately INR 33 while of HDFC Hybrid Equity Fund was approximately INR 149. With respect to the scheme category, it can be said that both the schemes belong to the same category, that is, Hybrid Balanced-Equity. The table given below shows the summary comparison of the basics section.

Performance Section

Being the second section in the comparison of both the schemes, it compares the Compounded Annual Growth Rate or CAGR returns for both the schemes. These returns are compared at different time intervals such as 6 Month Return, 1 Year Return, 5 Year Return, and Return since Inception. The comparison of the performance section reveals that in most of the situations, the performance of HDFC Hybrid Equity Fund is better as compared to ICICI Prudential Balanced Advantage Fund. The summary comparison of the performance section is tabulated as follows.

Yearly Performance Section

Yearly performance section compares the absolute returns generated by both the schemes for a particular year. It is the third section in comparison of the schemes. The comparison of yearly performance reveals that for certain years, the performance of HDFC Hybrid Equity Fund is better as compared to ICICI Prudential Balanced Advantage Fund. However, for certain years, the performance is vice versa. The table given below shows the summary comparison of the yearly performance section.

Other Details Section

It is the last section in the comparison of both the schemes. The comparable elements forming part of the other details section include AUM, Minimum SIP and lumpsum investment, and exit load. The comparison of AUM shows that there is a difference between the AUM of both the schemes. As on March 31, 2018, the AUM of ICICI Prudential Balanced Advantage Fund is approximately INR 26,050 Crores while of HDFC Balanced Fund is approximately INR 20,401 Crores. The minimum SIP investment is also different for both the schemes. For HDFC Mutual Fund’s scheme, the SIP amount is INR 500 while for ICICI Prudential Mutual Fund’s scheme, it is INR 1,000. However, the minimum lumpsum investment in case of both the schemes is same, that is, INR 5,000. Even the exit load for both the scheme shows a difference. In case of HDFC’s scheme, the exit load is 1% if the Redemption is done within one year and of ICICI’s scheme, the exit load is 1% if the redemption is done within 18 months from the date of investment. The table given below shows the comparison summary of other details section.

Growth of 10k Investments over the years