HDFC Hybrid Equity Fund is a balanced mutual fund launched in the year 2000. The fund invests in a mix of equity stocks and debt instruments and is a fund which gives long term capital appreciation. The fund has equity exposure in the region of 65% – 75%.
HDFC Hybrid Equity Fund belongs to the HDFC mutual fund family which is currently India’s second-biggest fund house in terms of asset under management out of more than 40 fund houses and was established in the year 2000. The fund is large and a very experienced one. HDFC Hybrid Equity Fund was launched in September of 2000, this basically means that the fund has been active for more than 18 years now.
The fund is categorized in the ‘balanced’ category which is also known as the equity-oriented hybrid fund category. Balanced funds are those hybrid funds which invest 60% – 80% of their portfolio in equity and rest in debt. The equity allocation of HDFC Hybrid Equity Fund is around 67% and the debt allocation is around 33%. The asset under management of this fund is very huge, close to Rs.14,000crores and is the 4th biggest balanced fund among over 40 funds. This high AUM shows that the fund has performed exceptionally well and that investors trust this fund.
Benchmark of the fund is CRISIL Balanced Fund Aggressive Index. The fund has beaten its benchmark and category average across 1, 3, 5, and 10 years trailing returns. In the calendar returns, HDFC Hybrid Equity Fund has beaten both benchmark and category average 6 times in the last 10 years. This performance is very good.
The fund manager of this fund is ChiragSetalvad. He is the fund manager of this mutual fund since 2007. Chirag also manages HDFC Midcap Opportunities fund since 2007 as well. It is a midcap oriented fund with close to Rs.17,000crores asset under management. He also manages two relatively smaller funds; HDFC Children’s Gift Fund and HDFC Long Term Advantage Fund. Both these funds are very good performing funds as well.
The mutual fund has 65 stocks in its portfolio with top 5 stocks contributing just above 18% of the total portfolio. It will be very safe to say that the fund has a very diversified portfolio. The top 3 sectors in which this fund invests contribute close to 35% of the overall portfolio and the allocation to the financial sector is the highest, about 21%.
The expense ratio of a fund plays a pivotal role in ascertaining the returns that an investor will get from investing in the fund. Expense ratio, in a nutshell, is just the cost of running a mutual fund. The expense ratio of this fund is 1.95% which is much lesser than the average expense ratio of this category which is 2.2%. Since the expense ratio is much better than the average, the investors can take home much of their earnings from the HDFC Hybrid Equity Fund.
HDFC Hybrid Equity Fund is a very popular balanced fund with close to Rs 14,000 crores asset under management. The fund has given an excellent performance by consistently beating its category average and benchmark. The fund is an average risk-taking fund with above-average equity return potential. The aim of this mutual fund is to give people the best possible returns by taking the lowest amount of risk possible. All in all, HDFC Hybrid Equity Fund is a very good mutual fund. If you want to invest in a good balanced mutual fund, then HDFC Hybrid Equity Fund should be in your shortlist.