Fincash » ICICI Prudential Equity and Debt Fund Vs HDFC Balanced Advantage Fund
Table of Contents
HDFC Balanced Advantage Fund and ICICI Prudential Equity and Debt fund both are a part of Balanced Fund equity category. These equity-oriented balanced funds invest a considerable stake of their corpus in equity and equity–related instruments and the remaining in fixed Income instruments. The proportion of debt and equity investments is pre-determined and may change over time. Balanced funds are suitable for individuals seeking regular income along with Capital appreciation over time. It is one of the good investment options for medium term. Though both HDFC Balanced Advantage Fund and ICICI Prudential Equity and Debt Fund belong to the same category of balanced fund yet; there are numerous differences between both the schemes related to their current NAV, Portfolio composition, performance, and so on. So, let us compare and check the differences between these schemes.
ICICI Prudential Equity and Debt Fund (earlier known as ICICI Prudential Balanced Fund) is a part ICICI Prudential Mutual Fund. It is an open-ended balanced fund which was launched on November 03, 1999. The scheme uses CRISIL Hybrid 35+65 – Aggressive Index as its benchmark to construct its portfolio. It also uses Nifty 50 Index and 1 Year T Bill as its additional benchmark to construct its portfolio. As on March 31, 2018, the top holdings of ICICI Prudential Equity and Debt Fund consisted of Tata Motors Limited, Hindustan Aeronautics Limited, Federal Bank Limited, Axis Bank Limited, and Infosys Limited. ICICI Prudential Equity and Debt Fund is managed by Mr. Sankaran Naren, Mr. Atul Patel, and Mr. Manish Banthia. Through diversification, the scheme aims to reduce risk and fluctuation in returns. It also aims to earn regular income along with capital appreciation over time.
HDFC Balanced Advantage Fund (earlier known as HDFC Prudence Fund) is a part of HDFC Mutual Fund under the balanced category. This scheme was launched in the year 1994. It is an open-ended Mutual Fund scheme that uses CRISIL Balanced Fund Index as its benchmark to construct the portfolio. As on March 31, 2018, some of the major holdings of HDFC Balanced Advantage Fund’s portfolio included Tata Consultancy Services, Tata Steel Limited, State Bank of India, Axis Bank Limited, Reliance Industries Limited, and Vedanta Limited. Mr. Rakesh Vyas and Mr. Prashant Jain together manage HDFC Balanced Advantage Fund. The scheme aims for capital appreciation and regular income by generating income from a portfolio comprising of equity and debt instruments. It also aims for minimizing or prevention of capital erosion. Under normal circumstances, the fund aims to invest around 40-75% of its investment in equity instruments while the remaining 25-60% in Fixed Income instruments.
Though both ICICI Prudential Equity and Debt Fund and HDFC Balanced Advantage Fund belong to the same category, however; there are differences between them. So, let us understand the differences between both the schemes in terms of AUM, Current NAV, performance, and Fincash Ratings. These parameters are divided into four sections, namely, Basics Section, Performance Section, Yearly Performance Section, and Other Details Section.
This elements forming part of basics section include Fincash Ratings, Category, and Current NAV. With respect to Fincash Ratings, it can be said that, ICICI Prudential Equity and Debt Fund is a 4-Star Fund while HDFC Balanced Advantage Fund is a 3-Star Fund. The comparison of scheme category reveals that both the schemes belong to the same category that is, Hybrid Balanced – Equity. With respect to the current NAV of both the schemes, it can be said that HDFC Balanced Advantage Fund leads the race. As on April 11, 2018, the NAV of HDFC Balanced Advantage Fund was approximately INR 496 while the NAV of ICICI Prudential Equity and Debt Fund was INR 127. The comparison of Basics Section is given below 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 ICICI Prudential Equity and Debt Fund
Growth
Fund Details ₹372.34 ↓ -0.30 (-0.08 %) ₹41,396 on 30 Sep 24 3 Nov 99 ☆☆☆☆ Hybrid Hybrid Equity 7 Moderately High 1.78 3.41 2.09 7.75 Not Available 0-1 Years (1%),1 Years and above(NIL) HDFC Balanced Advantage Fund
Growth
Fund Details ₹502.3 ↑ 0.38 (0.08 %) ₹96,536 on 30 Sep 24 11 Sep 00 ☆☆☆☆ Hybrid Dynamic Allocation 23 Moderately High 1.43 2.75 0 0 Not Available 0-1 Years (1%),1 Years and above(NIL)
In performance section, the Compounded Annual Growth Rate or CAGR returns are compared. These returns are compared at different time intervals such as 1 Month Return, 6 Month Return, 3 Year Return, and 5 Year Return. On a holistic note, it can be said that there is not much difference in the performance of both the schemes. However, in most of the time intervals, ICICI Prudential Equity and Debt Fund has performed better. In certain instances, even HDFC Balanced Advantage Fund has done better. The summary comparison of performance section between both the schemes are tabulated as follows.
Parameters Performance 1 Month 3 Month 6 Month 1 Year 3 Year 5 Year Since launch ICICI Prudential Equity and Debt Fund
Growth
Fund Details -4.3% -0.8% 8% 34% 19.6% 22.2% 15.6% HDFC Balanced Advantage Fund
Growth
Fund Details -2.4% -1.8% 7.3% 32.8% 21.4% 20.2% 18.5%
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This section compares the absolute returns generated by both the schemes for a particular year. The comparison of yearly performance section shows that in most of the cases, ICICI Prudential Equity and Debt Fund has done better as compared to HDFC Balanced Advantage Fund. The summary comparison of yearly performance section is tabulated as follows.
Parameters Yearly Performance 2023 2022 2021 2020 2019 ICICI Prudential Equity and Debt Fund
Growth
Fund Details 28.2% 11.7% 41.7% 9% 9.3% HDFC Balanced Advantage Fund
Growth
Fund Details 31.3% 18.8% 26.4% 7.6% 6.9%
It is the last section in the comparison of both the schemes. The parameters forming part of this section are AUM, Minimum Lumpsum Amount, Minimum SIP Amount, and exit load. The comparison of AUM shows that HDFC Balanced Advantage Fund leads the race. As on February 28, 2018, the AUM of HDFC Balanced Advantage Fund was approximately INR 37,836 Crores. On the other hand, the AUM of ICICI Prudential Equity and Debt Fund was approximately INR 27,801 Crores. With respect to the SIP investment, the minimum SIP amount for HDFC’s scheme is INR 500 while for ICICI’s scheme is INR 1,000. However, the lumpsum invest for both the schemes is same, that is, INR 5,000. Also, the exit load for both the schemes is same. If the Redemption is done within 1 Year from the date of purchase, then individuals need to pay 1% as exit load. However, in case of redemption after 1 Year there is no exit load attached. The table given below summarizes the comparison of other details section.
Parameters Other Details Min SIP Investment Min Investment Fund Manager ICICI Prudential Equity and Debt Fund
Growth
Fund Details ₹100 ₹5,000 Sankaran Naren - 8.82 Yr. HDFC Balanced Advantage Fund
Growth
Fund Details ₹300 ₹5,000 Anil Bamboli - 2.18 Yr.
ICICI Prudential Equity and Debt Fund
Growth
Fund Details Growth of 10,000 investment over the years.
Date Value 31 Oct 19 ₹10,000 31 Oct 20 ₹9,198 31 Oct 21 ₹15,945 31 Oct 22 ₹17,634 31 Oct 23 ₹20,357 31 Oct 24 ₹27,284 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
ICICI Prudential Equity and Debt Fund
Growth
Fund Details Asset Allocation
Asset Class Value Cash 16.21% Equity 68.06% Debt 14.99% Equity Sector Allocation
Sector Value Financial Services 18.98% Consumer Cyclical 11.57% Utility 6.93% Energy 6.16% Health Care 6.01% Communication Services 4.82% Industrials 4.72% Technology 2.86% Consumer Defensive 2.61% Basic Materials 1.94% Real Estate 1.51% Debt Sector Allocation
Sector Value Corporate 12.9% Cash Equivalent 12.03% Government 7% Credit Quality
Rating Value A 3.78% AA 30.35% AAA 65.87% Top Securities Holdings / Portfolio
Name Holding Value Quantity NTPC Ltd (Utilities)
Equity, Since 28 Feb 17 | 5325557% ₹2,784 Cr 62,807,600
↓ -6,361,500 ICICI Bank Ltd (Financial Services)
Equity, Since 31 Jul 12 | ICICIBANK6% ₹2,492 Cr 19,579,632 HDFC Bank Ltd (Financial Services)
Equity, Since 30 Apr 21 | HDFCBANK5% ₹2,213 Cr 12,775,772
↓ -394,900 Maruti Suzuki India Ltd (Consumer Cyclical)
Equity, Since 31 Jul 21 | MARUTI5% ₹2,089 Cr 1,578,091 Bharti Airtel Ltd (Communication Services)
Equity, Since 31 May 16 | BHARTIARTL4% ₹1,679 Cr 9,820,680
↓ -303,525 Sun Pharmaceuticals Industries Ltd (Healthcare)
Equity, Since 31 May 16 | SUNPHARMA4% ₹1,650 Cr 8,561,834
↓ -482,300 Reliance Industries Ltd (Energy)
Equity, Since 30 Jun 22 | RELIANCE3% ₹1,185 Cr 4,014,343 Oil & Natural Gas Corp Ltd (Energy)
Equity, Since 30 Apr 17 | 5003123% ₹1,133 Cr 38,077,802
↑ 3,600,301 TVS Motor Co Ltd (Consumer Cyclical)
Equity, Since 28 Feb 18 | 5323433% ₹1,091 Cr 3,840,285 Govt Stock 22092033
Sovereign Bonds | -2% ₹829 Cr 80,746,220 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 1.7% AAA 98.3% 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
Thus, the above pointers reveal that there exists a difference between both the schemes. As a result, individuals should be extremely careful while Investing in any of the schemes. They should check whether the scheme is in-line with their investment objectives or not. If required, individuals can even consult a financial advisor. This will help individuals to attain their investment goals on-time in a hassle-free manner.
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