HDFC Hybrid Equity Fund - Why and How?

Posted by Dishika Baheti on September 3rd, 2018

Hybrid Equity Fund

HDFC Mutual Fund has brought to investors a number of schemes to invest in under different categories with distinct risk factors. After the re-categorization guidelines hit the mutual fund market, a number of schemes have undergone changes. HDFC Hybrid Equity Fund is a result of this re-categorization and a merger of two schemes HDFC Balanced Fund and HDFC Premier Multi-Cap Fund. In this article, you will read about why and how you may invest in this scheme. But first, let’s read what this fund is all about.

What Is HDFC Hybrid Equity Fund Growth?
The investment objective of this scheme is to earn long-term capital appreciation by investing in equity and equity-related instruments and generate income by investing in debt and money market instruments. However, it cannot be assured that the investment objective will be realized as mutual funds are always subject to market risk. This scheme is for investors who have high risk-bearing appetite as it involves moderately high risk on the principal amount invested.

Why Should You Invest in HDFC Hybrid Equity Fund G?
There are a number of factors as to why an investor must invest in a particular scheme. Talking about this scheme, it has unique features that are enough to attract any investor. Being backed by Housing Development Finance Corporation Limited is one of the reasons. Also, this company already holds the trust of many and has become a live example of success. Following are the reasons that may influence any investor to invest his/her surplus in it.

Performance -

1) Comparison with Benchmark - This scheme has surpassed its benchmark VR Balanced TRI when we look at the three and five-year returns as on August 24th, 2018. Three-year and five-year rate of return yielded by the scheme were 12.87% and 21.26% while that of the benchmark were 12.06% and 15.73%, resp.

2) Comparison with Category - This scheme has also outperformed its category in both three-year and five-year returns. The three-year and five-year returns that this scheme has yielded are of 12.87% and 21.26%, whereas that of category are 12.12% and 17.93%.

3) Comparison with Competitors - This fund has ever outperformed all its competitors such as HDFC Children’s Gift Fund, ICICI Prudential Equity and Debt Fund, Principal Hybrid Equity Fund, and Reliance Equity Hybrid Fund in terms of five-year returns.

Risk Management - The standard deviation of this scheme is comparatively less than both its benchmark and category’s average which show that it is less likely to fluctuate. The sharpe ratio of this scheme is 0.41% which is again more than the other two.This ratio indicates that it is likely to provide better returns with the risk taken compared to its benchmark and category.

The above points show that this scheme is a good performer and is even managing the risk well.

How to Invest in HDFC Hybrid Equity Fund?
You may invest in HDFC Hybrid Equity Fund G scheme both through online as well as offline mode. Investing online will help you save time as well as money. The minimum investment amount with which you may invest in this scheme is Rs. 5000 for new investors. The existing investors may invest in it with Rs. 1000. There is no entry load chargeable from investors investing in this scheme. Any investor who redeems more than 15% of the units that too within one year of investment from the date of allotment will become liable to pay 1% as exit load. The net asset value at which the units will be distributed is Rs. 52.758 as on August 24th, 2018. In case of any confusion that you may have, consult a financial advisor.

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Dishika Baheti

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Dishika Baheti
Joined: February 14th, 2018
Articles Posted: 33

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