Skip to main content

HDFC Balanced Advantage Fund

Best SIP Funds to Invest Online 


HDFC Mutual Fund has proposed to merge HDFC Prudence Fund and HDFC Growth Fund into HDFC Balanced Advantage Fund. HDFC Prudence Fund is a large balanced scheme managing assets worth Rs 36,594 crore. The new scheme is a balanced advantage fund that will dynamically manage its portfolio between equity and debt instruments.

Should you hold your investments in HDFC Prudence Fund or sell it?
According to mutual fund advisors, investors should consider selling their investments in HDFC Prudence Fund.

For investors who had invested in the scheme with a view to keep a 70: 30 allocation (in equity and debt), may exit the scheme after the merger. Going by the changed portfolio allocation and strategy, the scheme will become less volatile. But, it will also generate lesser return in the bull market," says Shweta Jain, Founder & CEO, Investography. Also, most investors in the fund have come in for the monthly dividend and there is no surety of this payment now


The AMC will allow existing unit holders of HDFC Prudence Fund, who do not wish to continue with the scheme, to exit the scheme without any exit load between May 3 and June 1.


Mutual fund advisors also say that investors should be mindful about a likely to change in taxation of the scheme. HDFC Prudence Fund was an equity-oriented hybrid scheme or balance scheme that is considered as an equity scheme for the purpose of taxation. Investments in equity schemes held over a year qualify for long-term capital gains tax of 10 per cent.


Balanced advantage funds may be treated as non-equity schemes if their equity holdings fall below 65 per cent over a prolonged period, according the notice. If investments in debt schemes are held for more than three years, they qualify for long-term capital gains tax of 20 per cent with indexation benefit.

HDFC Balanced Advantage will be classified as an open-ended balanced advantage fund. The revised scheme may invest up to 100 per cent in equity and equity-related instruments, up to 100 per cent in debt securities and money market instruments, up to 10 per cent in units issued by REITs and InvITs and up to 10 per cent in non-convertible preference shares.

The scheme may also invest up to 35 per cent of its total assets in investment avenues in overseas financial markets via via ADRs/ GDRs and foreign securities for the purpose of diversification. The scheme is also allowed to invest up to 100 per cent of its total assets in derivatives and will be benchmarked against NIFTY 50 Hybrid Composite Debt 65:35 Index. 

The scheme will be managed jointly by Prashant Jain, and Rakesh Vyas, who would manage the overseas assets.

 
These changes will become effective from the close of business hours on June
 
 



SIPs are Best Investments when Stock Market is high volatile. Invest in Best Mutual Fund SIPs and get good returns over a period of time. Know Top SIP Funds to Invest Save Tax Get Rich - Best ELSS Funds

For more information on Top SIP Mutual Funds contact Save Tax Get Rich on 94 8300 8300

OR

You can write to us at

Invest [at] SaveTaxGetRich [dot] Com

Popular posts from this blog

IDFC - Long term infrastructure bonds - Tranche 2

IDFC - Long term infrastructure bonds What are infrastructure bonds? In 2010, the government introduced a new section 80CCF under the Income Tax Act, 1961 (" Income Tax Act ") to provide for income tax deductions for subscription to long-term infrastructure bonds and pursuant to that the Central Board of Direct Taxes passed Notification No. 48/2010/F.No.149/84/2010-SO(TPL) dated July 9, 2010. These long term infrastructure bonds offer an additional window of tax deduction of investments up to Rs. 20,000 for the financial year 2010-11. This deduction is over and above the Rs 1 lakh deduction available under sections 80C, 80CCC and 80CCD read with section 80CCE of the Income Tax Act. Infrastructure bonds help in intermediating the retail investor's savings into infrastructure sector directly. Long term infrastructure Bonds by IDFC IDFC issued an earlier tranche of these long term infrastructure bonds on November 12, 2010. This is the second public issue of long-te...
Read more

Mutual Fund Review: HDFC Index Sensex Plus

  In terms of size, HDFC Index Sensex Plus may be one of the smallest offerings from the HDFC stable. But that has not dampened its show, which has beaten the Sensex by a mile in overall returns   HDFC Index Sensex Plus is a passively managed diversified equity scheme with Sensex as its benchmark index. The fund also invests a small proportion of its equity portfolio in non-Sensex scrips. The scheme cannot boast of an impressive size and is one of the smallest in the HDFC basket with assets under management (AUM) of less than 60 crore. PERFORMANCE: Being passively managed and portfolio aligned to that of the benchmark, the performance of the index fund is expected to follow that of the benchmark and in this respect, it has not disappointed investors. Since its launch in July 2002, the fund has outperformed Sensex in overall returns by good margins.    While every 1,000 invested in HDFC Index Sensex Plus in July 2002 is worth 6,130 now, a similar amount invested in Sensex then wo...
Read more

Am you Required to E-file Tax Return?

Download Tax Saving Mutual Fund Application Forms Invest In Tax Saving Mutual Funds Online Buy Gold Mutual Funds Leave a missed Call on 94 8300 8300   Am I Required to 'E-file' My Return? Yes, under the law you are required to e-file your return if your income for the year is Rs. 500,000 or more. Even if you are not required to e-file your return, it is advisable to do so for the following benefits: i) E-filing is environment friendly. ii) E-filing ensures certain validations before the return is filed. Therefore, e-returns are more accurate than the paper returns. iii) E-returns are processed faster than the paper returns. iv) E-filing can be done from the comfort of home/office and you do not have to stand in queue to e-file. v) E-returns can be accessed anytime from the tax department's e-filing portal. For further information contact Prajna Capit...
Read more

Different types of Mutual Funds

You may not be comfortable investing in the stock market. It might not seem like your cup of tea. But you can start by investing in Mutual Funds. Many first-time investors invest in Mutual Funds. This is because they do not know how to invest in individual securities. Basic information on Mutual Funds People invest their money in stocks, bonds, and other securities through Mutual Funds. Each Fund has different schemes with specific objectives. Professional Fund Managers look after these schemes. Your Fund Manager could help you invest in a scheme that suits your financial goal. Functioning of Mutual Funds You could make money through Mutual Funds in different ways. A single Mutual Fund could hold many different stocks, bonds, and debentures. This minimizes the risk by spreading out your investment. You could earn dividends from stocks and interest from bonds. You could also earn capital by selling securities when their price increases. Usually, you could choose to sell your share any t...
Read more

National Savings Certificate

National Savings Certificate Here's everything you need to know about the 5-year savings scheme offered by the Government This is a 5-year small savings scheme of the government. From 1 July 2016, a National Savings Certificate (NSC) can be held in the electronic mode too. Physical pre-printed NSC certificates have been discontinued and replaced with Public Provident Fund-like passbooks. What's on offer The minimum amount you can invest in them is Rs100 and there is no upper limit. Under this scheme, all deposits up to Rs1.5 lakh qualify for deduction under section 80C of the Income-tax Act, 1961. The interest earned is taxable. You can invest in multiples of Rs 100. These certificates can be owned individually, jointly and also on behalf of minors. The interest rates for all small savings schemes are released on a quarterly basis. The effective rate for NSC from 1 October to 31 December is 8%. The interest is calculated on an annual compounding basis and is given along w...
Read more
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