HDFC Balanced Advantage Fund Vs HDFC Top 100 Fund

There are a number of differences between HDFC Balanced Advantage Fund and HDFC Top 100 Fund. These differences exist in spite of both the schemes forming part of the same category and belonging to the same fund house. These schemes are a part of Large cap funds. Large-cap funds are the Mutual Fund schemes that invest their accumulated money in stocks of companies having a market capitalization of more than INR 10,000 Crores. These companies are huge in terms of market capitalization, product size, and human capital. Large-cap companies are also known as bluechip companies and are considered as the market leaders in their respective. Though large-cap funds are of the same category nevertheless; there are numerous differences between them. So, let’s understand the differences between these schemes through this article.

HDFC Balanced Advantage Fund (Erstwhile HDFC Growth Fund)

HDFC Balanced Advantage Fund's (earlier known as HDFC Growth Fund) investment objective is to attain capital appreciation from a portfolio of securities predominantly consisting of equity and equity-related securities. HDFC Balanced Advantage Fund uses S&P BSE Sensex and Nifty 50 Index as its primary and additional benchmark to build its basket of assets. Mr. Srinivas Rao Ravuri and Mr. Rakesh Vyas are the joint fund managers of HDFC Balanced Advantage Fund. Based on the Asset Allocation objective of the scheme, HDFC Balanced Advantage Fund invests around 80-100% of its accumulated fund money in equity and equity-related instruments and the remaining portion in fixed income and money market instruments. The scheme follows five basic principles of investment approach that includes focussing on long-term, maintain a balanced outlook on the market, and disciplined approach to selling.

HDFC Top 100 Fund (Erstwhile HDFC Top 200 Fund)

HDFC Top 100 Fund (earlier known as HDFC Top 200 Fund) is offered and managed by HDFC Mutual Fund under the large-cap category. The scheme invests a significant stake of its corpus in the stock of companies forming part of BSE 200 Index. The scheme was launched on October 11, 1996. HDFC Top 100 Fund uses S&P BSE 200 Index as its primary index and S&P BSE Sensex as its additional benchmark to construct its portfolio. Some of the constituents that form part of the Top 10 holdings of HDFC Top 100 Fund include HDFC Bank Limited, Infosys Limited, Larsen & Toubro Limited, Reliance Industries Limited, and State Bank of India. Based on the asset allocation objective of the scheme, it invests up to 100% of its fund in equity and equity-related instruments. HDFC Top 100 Fund is jointly managed by Mr. Rakesh Vyas and Mr. Prashant Jain.

HDFC Balanced Advantage Fund Vs HDFC Top 100 Fund

The numerous parameters on which HDFC Balanced Advantage Fund and HDFC Top 100 Fund differ are classified into four section. These sections are explained below as follows.

Basics Section

It is the first section in the comparison that includes comparable parameters such as current NAV, Fincash Rating, and scheme category. The comparison of scheme category shows that both the schemes belong to the Equity Large Cap category. On the basis of Fincash Rating, it can be said that, HDFC Balanced Advantage Fund is a 4-Star scheme and HDFC Top 100 Fund is a 3-Star scheme. The comparison of current NAV also shows a difference between both the schemes. As on May 02, 2018, the NAV of HDFC Top 100 Fund was around INR 447 and of HDFC Balanced Advantage Fund was approximately INR 185. The comparison of the basics section is tabulated as follows.

Performance Section

It is the second section in the comparison of the schemes that analyzes the differences in the Compounded Annual Growth Rate or CAGR returns of both the schemes. These CAGR returns are compared at different intervals such as 1 Month Return, 6 Month Return, 3 Year Return, and 5 Year Return. On the basis of performance, it can be said that in certain instances, HDFC Top 100 Fund leads the race and in others, HDFC Balanced Advantage Fund has performed better. The table given below compares the differences in the performance section.

Yearly Performance Section

Being the third section in the comparison, it analyzes the differences in the absolute returns of both the schemes for a particular year. The comparison of absolute returns also states that for certain years, HDFC Balanced Advantage Fund has done well and for other years, HDFC Top 100 Fund has done better. The table given below summarizes the comparison of yearly performance section.

Other Details Section

Being the last section in the comparison, it includes comparable elements such as AUM, minimum SIP and lumpsum investment, and much more. The minimum SIP and lumpsum investment are same for both the schemes. The minimum SIP amount for both the schemes is INR 500 while the lumpsum amount for both the schemes is INR 5,000. However, there is a significant difference in the AUM of both the schemes. As on March 31, 2018, the AUM of HDFC Top 100 Fund was approximately INR 14,350 Crores and of HDFC Balanced Advantage Fund was around INR 1,129 Crores. The comparison of other details section is as follows.

Growth of 10k Investments over the years