Skip to main content

HDFC Prudence Fund

Now This fund is called HDFC Balanced Advantage Fund 

Equity-oriented products of mutual funds have seen their strongest-ever investor appetite in the past year, but one scheme has stood out in the inflow deluge. HDFC Prudence Fund, an equity oriented balanced scheme, has seen assets under management soar 250% or `17,000 crore in the last 15 months to `24,479 crore. The balanced fund category's assets increased 147% in the period. The jump in assets has made HDFC Prudence the largest scheme that is taxed as an equity product in the domestic mutual fund industry .

So, what makes the 23-year-old product so special?

The fund, managed by Prashant Jain, widely regarded as one of the most competent money managers, has delivered an annualised return of 19.42% since its inception. In the last 10 years, the fund has returned 14.4% annually against the category average of 10.9%. A balanced fund invests in a mix of equity and debt. This product enjoys the taxation benefit of an equity scheme if it invests at least 65% in stocks.


While higher returns by the fund has been a draw for investors, another reason that has resulted in heightened interest in the product has been its dividend payout.


Wealth managers said the scheme's assets saw a spike after it started offering a monthly dividend payout option since January 2016.Since then, the fund has been paying a dividend of `0.3 monthly which on a face value of `10, translates into a yield of 12% per annum.


It is clear that ever since the fund started its monthly dividend option in 2016, the AUM has seen a sharp jump. The other good fund in its sta ble, HDFC Balanced, which does not have a monthly dividend option, did not see such a sharp jump in AUM


HDFC Prudence, which had been paying an annual dividend every year since 1999, changed the option to monthly dividend in 2016. Since dividend income is tax free in hands of investors and bank deposit rates were on a downward trend, many schemes were offering monthly dividends, to attract investors.

Between March 2015 and January 2016, a lot of fund houses started to offer dividend plan in their hybrid schemes. However, HDFC Prudence has been beneficiary of this trend due to their high monthly dividend yield

Other funds in the category Canara Robeco Balance, ICICI Prudential Balanced Fund, L&T India Prudence and Tata Balanced too have been paying monthly divi dends, said wealth managers.

Monthly tax-free dividend of 12% attracted both savvy HNIs as well as retirees HDFC Prudence. Jain's strategy of betting on an industrial recovery along with interest rates heading lower has helped the fund return 27% over the last year, further attracting investors.

Advisors say investors with a time frame of five years and above can hold on or buy balanced funds, but those buying it merely with the objective of earning high dividend should be ready for lower dividends in case the markets correct.

Fund houses can pay regular dividends only out of the distributable surplus. Investors' depending on balanced funds for regular dividends may be caught on the wrong foot if the market changes track and moves in a southward direction for some time




Invest Rs 1,50,000 and Save Tax up to Rs 46,350 under Section 80C. Get Great Returns by Investing in Best Performing ELSS Funds. Save Tax Get Rich

For further information contact SaveTaxGetRich on 94 8300 8300

OR

You can write to us at

Invest [at] SaveTaxGetRich [dot] Com

OR

Call us on 94 8300 8300




 

Popular posts from this blog

ICICI Pru Mutual Fund Dividend

ICICI Prudential Mutual Fund has announced dividend under the following schemes: Scheme Dividend ( Rs /unit) ICICI Pru Capital Protection Oriented Ser V Plan B-D 0.03611325 ICICI Pru Capital Protection Oriented Ser V Plan B Direct-D 0.03611325 ICICI Pru Balanced Advantage Direct-DM 0.06 The record date has been fixed as February 08, 2017. ------------------------------ ------ Invest Rs 1,50,000 and Save Tax upto Rs 46,350 under Section 80C. Get Great Returns by Investing in Best Performing ELSS Funds Top 4 Tax Saver Mutual Funds for 2017 - 2018 Best 4 ELSS Mutual Funds to invest in India for 2017 1. DSP BlackRock Tax Saver Fund 2. Invesco India Tax Plan 3. Tata India Tax Savings Fund 4. BNP Paribas Long Term Equity Fund Invest in Best Performing 2017 Tax Saver Mutual Funds Online Invest Best Tax Saver Mutual Funds Online Download Top Tax Saver Mutual Funds  Application Forms For further information contact  SaveTaxGetRich on 94 8300 8300 ------------------------------ ------ Leave y...

What is Financial Freedom?

Invest In Tax Saving Mutual Funds Online Download Tax Saving Mutual Fund Application Forms Buy Gold Mutual Funds Call 0 94 8300 8300 (India)     There were many things common between our Freedom fighters. All had the Single vision (Free India), common goal (independence) and had a disciplined and focused approach. They were ready to do anything and everything and had made so many sacrifices to see India free . But the road to freedom was not easy .They had faced lot many hardships, went to jail so many times and even confronted physical and mental torture from the British. There was one more thing which proved to be an advantage to our fighters that most of them were professional lawyers. The knowledge of legal issues and its impact on our country at large has helped them counter various bills and proposed new laws by the then government. It is due to their continuous effort that we are able to achieve the goal of Independent Indi...

Hidden Bank Fees

  What Banks Hide From Customers Imagine after a peaceful and exciting holiday you receive your bank statement with steep charges. You then rush to your bank and start confronting staff members and to your dismay, you come to know that the high end debit card was charged very heavily. Wouldn't this cause damage to your finances? So remember, the world outside is full of deceptive and double cheating people. Unethical practices are always used by company sales person in order to meet the target. Credit card companies, mutual funds and bank institutions always play dirty tricks to lure customers and the practices are rampant. So here's how you should be careful while dealing with your banks: High End Debit Card Charges While opening an account with a bank you opt for a debit card with minimal charges. But later on when you upgrade your card and opt for high end debit card the annual charge rise by a good amount. Though such a card has slew of features but it all comes at a high ...

Partial withdrawal from PPF

  Public Provident Fund (PPF) account has a lock in period   If you opened a PPF account to meet your retirement needs,, think twice about withdrawing from this fund before retirement. But provided it's an emergency here are the rules. Public Provident Fund (PPF) account has a lock in period before which you cannot withdraw your money.   The partial withdrawal is allowed after the completion of 6 financial years . This means that you will be allowed a partial withdrawal from 1 April 2017. The maximum partial withdrawal allowed is the least of the following: 50 percent of the account balance at the end of fourth financial year, 31 March 15 50 percent of the account balance of the end of previous financial year, 31 March 17.   There's a loan option available on your PPF account between the fourth and the sixth financial year. You can obtain a loan of up to 25 per cent of the balance in your account. However, this will attract interest of 2 percent more than the prevailing ...

Updating a minor PAN card upon becoming adults

  Updating a minor's PAN card once they become adults A PAN card issued in the name of a minor does not contain the minor's photograph or signature, and therefore, cannot be used as a valid proof of identity. Once a minor PAN card holder turns 18, the relevant changes must be made in the PAN records. A new card is then issued bearing a photograph and signature. Application The applicant is required to fill up the "Request for new PAN card andor changes or correction in PAN data" form. The form can be filled up online by accessing NSDL's Tax Information Network website and clicking on the online PAN application tab. Information The applicant must mention the existing PAN number in the application and check the `photo mismatch' and `signature mismatch' boxes, and submit the online form. The form must also be printed out, signed by the applicant, and submitted along with two photographs. Documents Identity and address proof in the form of a copy of the app...
Related Posts Plugin for WordPress, Blogger...
Invest in Tax Saving Mutual Funds Download Any Applications
Transact Mutual Funds Online Invest Online
Buy Gold Mutual Funds Invest Now