Table of Contents
HDFC Hybrid Equity Fund and SBI Equity Hybrid Fund both are a part of Balanced Fund- equity category. These schemes invest their accumulated funds in both equity as well as debt instruments. However, the proportion of equity investments in the total Portfolio is more than 65%. These schemes are suitable for investors who do not have a high-risk appetite but at the same time, they are looking for exposure in equity investments. Though both HDFC Hybrid Equity Fund and SBI Equity Hybrid Fund are a part of balanced funds yet, there are differences between both the schemes based on their returns, AUM, and other related parameters. So, let us look at the differences between both the schemes through this article.
HDFC Balanced Fund is offered and managed by HDFC Mutual Fund. HDFC Premier Multi-Cap Fund and HDFC Balanced Fund merged to form HDFC Hybrid Equity Fund. This scheme is an open-ended balanced scheme that uses CRISIL Balanced Fund Index as its benchmark to construct its portfolio. HDFC Hybrid Equity Fund was launched in the year 2000 and its objective is to attain Capital appreciation along with current Income. As on February 28, 2018, some of the constituents of HDFC Hybrid Equity Fund’s portfolio consisted of HDFC Bank Limited, Infosys Limited, ICICI Bank Limited, State Bank of India, and Voltas Limited. The fund managers managing HDFC Balanced Fund are Mr. Chirag Setalvad and Mr. Rakesh Vyas. The risk appetite of HDFC Hybrid Equity Fund is moderately high. Thus, this scheme is suitable for investors who are ready to some level of risk in their investments.
SBI Equity Hybrid Fund (earlier known as SBI Magnum Balanced Fund) was launched in December 1995 and is managed by SBI Mutual Fund. The scheme uses CRISIL Balanced Fund – Aggressive Index as its yardstick to build its portfolio. The objective of this scheme is to strive for capital growth in long-term along with liquidity by Investing in a combination of equity and Debt fund. As on February 28, 2018, some of the investments that formed part of SBI Equity Hybrid Fund’s portfolio included Kotak Mahindra Bank Limited, Bharti Airtel Limited, Interglobe Aviation Limited, and Infosys Limited. The scheme invests its corpus in companies having high growth potential and balances the risk by investing certain proportion in debt instruments. SBI Equity Hybrid Fund is jointly managed by Mr. R. Srinivasan and Mr. Dinesh Ahuja.
Though both HDFC Hybrid Equity Fund and SBI Equity Hybrid Fund belong to the same category yet; there are differences between both the schemes. So, let us look at the differences between both the schemes based on numerous parameters that are divided into four sections, namely, Basics Section, Performance Section, Yearly Performance Section, and Other Details Section.
The comparable elements forming part of basics section include Scheme Category, Current NAV, Fincash Rating, and so on. To begin with the scheme category, it can be said that both the schemes belong to the same category, that is, Hybrid Balanced – Equity. With respect to Fincash Ratings, it can be said that HDFC Hybrid Equity Fund is rated as a 5-Star Scheme while SBI Equity Hybrid Fund is rated as a 4-Star Scheme. The comparison of NAV of both the schemes reveals that HDFC Hybrid Equity Fund leads the race. As on March 22, 2018, the NAV of HDFC Balanced Fund was approximately INR 142 and of SBI Equity Hybrid Fund was approximately INR 121. The comparison summary of the basics section is tabulated below.
Parameters Basics NAV Net Assets (Cr) Launch Date Rating Category Sub Cat. Category Rank Risk Expense Ratio Sharpe Ratio Information Ratio Alpha Ratio Benchmark Exit Load HDFC Hybrid Equity Fund
Growth
Fund Details ₹114.908 ↑ 0.71 (0.62 %) ₹24,068 on 31 Oct 24 6 Apr 05 ☆☆ Hybrid Hybrid Equity 57 Moderately High 1.7 1.94 0 0 Not Available 0-1 Years (1%),1 Years and above(NIL) SBI Equity Hybrid Fund
Growth
Fund Details ₹278.256 ↑ 1.96 (0.71 %) ₹71,585 on 31 Oct 24 19 Jan 05 ☆☆☆☆ Hybrid Hybrid Equity 10 Moderately High 1.46 1.75 -0.57 -0.21 Not Available 0-12 Months (1%),12 Months and above(NIL)
The Compounded Annual Growth Rate or CAGR returns at different time intervals are compared in the performance section. These different time intervals at which the returns are compared include 1 Month Return, 6 Month Return, 3 Year Returns, and so on. The comparison of performance section reveals that there is not much difference between both the returns generated by both the schemes. However, in many time intervals, the returns of HDFC Hybrid Equity Fund are higher as compared to the returns of SBI Equity Hybrid Fund. The table given below summarizes the comparison of performance section.
Parameters Performance 1 Month 3 Month 6 Month 1 Year 3 Year 5 Year Since launch HDFC Hybrid Equity Fund
Growth
Fund Details 0.8% -0.9% 6.6% 20.3% 14.2% 15.9% 15.5% SBI Equity Hybrid Fund
Growth
Fund Details 0.3% -0.9% 6.7% 20.9% 11.6% 13.9% 15%
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Yearly Performance section compares the returns generated by both the schemes for a particular year. The comparison of yearly performance reveals that for certain years, the performance of HDFC Hybrid Equity Fund is better while for certain years; the performance of SBI Equity Hybrid Fund is better. The table given below summarizes the comparison of yearly performance section.
Parameters Yearly Performance 2023 2022 2021 2020 2019 HDFC Hybrid Equity Fund
Growth
Fund Details 17.7% 8.9% 25.7% 13.4% 7.5% SBI Equity Hybrid Fund
Growth
Fund Details 16.4% 2.3% 23.6% 12.9% 13.5%
This is the last section of comparison between both the schemes. The elements that form part of this section include AUM, Minimum SIP investment, Minimum Lump sum Investment, and so on. The minimum SIP investment for both the schemes is same that is, INR 500. However, in case of Minimum Lumpsum investment, the amount is different for both the schemes. The minimum lump sum amount for HDFC Hybrid Equity Fund is INR 5,000 and for SBI Equity Hybrid Fund is INR 1,000. The AUM of both the schemes is also different though the difference isn’t much. As on February 28, 2018, the AUM of HDFC is approximately INR 20,191 crores and of SBI is approximately INR 21,404 crores. The summary of other details section is as follows.
Parameters Other Details Min SIP Investment Min Investment Fund Manager HDFC Hybrid Equity Fund
Growth
Fund Details ₹300 ₹5,000 Chirag Setalvad - 17.6 Yr. SBI Equity Hybrid Fund
Growth
Fund Details ₹500 ₹1,000 R. Srinivasan - 12.84 Yr.
HDFC Hybrid Equity Fund
Growth
Fund Details Growth of 10,000 investment over the years.
Date Value 30 Nov 19 ₹10,000 30 Nov 20 ₹10,732 30 Nov 21 ₹14,071 30 Nov 22 ₹15,808 30 Nov 23 ₹17,387 30 Nov 24 ₹20,886 SBI Equity Hybrid Fund
Growth
Fund Details Growth of 10,000 investment over the years.
Date Value 30 Nov 19 ₹10,000 30 Nov 20 ₹10,742 30 Nov 21 ₹13,823 30 Nov 22 ₹14,563 30 Nov 23 ₹15,904 30 Nov 24 ₹19,184
HDFC Hybrid Equity Fund
Growth
Fund Details Asset Allocation
Asset Class Value Cash 0.99% Equity 70.49% Debt 28.52% Equity Sector Allocation
Sector Value Financial Services 22.54% Industrials 11.66% Consumer Defensive 7.54% Technology 6.88% Energy 6.56% Health Care 4.91% Communication Services 4.29% Consumer Cyclical 3.15% Utility 1.47% Real Estate 0.75% Basic Materials 0.53% Debt Sector Allocation
Sector Value Government 15.35% Corporate 13.17% Cash Equivalent 0.99% Credit Quality
Rating Value AA 9.34% AAA 90.66% Top Securities Holdings / Portfolio
Name Holding Value Quantity ICICI Bank Ltd (Financial Services)
Equity, Since 30 Nov 10 | ICICIBANK7% ₹1,859 Cr 14,600,000 HDFC Bank Ltd (Financial Services)
Equity, Since 31 Aug 13 | HDFCBANK7% ₹1,635 Cr 9,440,000 Larsen & Toubro Ltd (Industrials)
Equity, Since 30 Nov 11 | LT5% ₹1,153 Cr 3,137,093 Reliance Industries Ltd (Energy)
Equity, Since 31 Mar 18 | RELIANCE4% ₹1,085 Cr 3,675,000 Bharti Airtel Ltd (Communication Services)
Equity, Since 31 May 12 | BHARTIARTL4% ₹1,026 Cr 6,000,000 Infosys Ltd (Technology)
Equity, Since 31 Jan 03 | INFY4% ₹980 Cr 5,223,368 ITC Ltd (Consumer Defensive)
Equity, Since 31 May 15 | ITC4% ₹970 Cr 18,714,400 State Bank of India (Financial Services)
Equity, Since 31 Oct 11 | SBIN4% ₹883 Cr 11,208,071 Axis Bank Ltd (Financial Services)
Equity, Since 30 Apr 15 | 5322152% ₹619 Cr 5,025,000 SKF India Ltd (Industrials)
Equity, Since 30 Jun 13 | SKFINDIA2% ₹513 Cr 943,108 SBI Equity Hybrid Fund
Growth
Fund Details Asset Allocation
Asset Class Value Cash 2.54% Equity 74.96% Debt 21.99% Equity Sector Allocation
Sector Value Financial Services 23.76% Basic Materials 9.48% Industrials 9.3% Consumer Cyclical 6.65% Communication Services 6.6% Energy 5.82% Health Care 4.68% Consumer Defensive 4.07% Technology 3.9% Real Estate 0.7% Debt Sector Allocation
Sector Value Government 12.98% Corporate 8.76% Cash Equivalent 2.54% Securitized 0.75% Credit Quality
Rating Value A 0.75% AA 27.56% AAA 71.69% Top Securities Holdings / Portfolio
Name Holding Value Quantity Reliance Industries Ltd (Energy)
Equity, Since 30 Nov 21 | RELIANCE6% ₹4,356 Cr 14,750,000 Bharti Airtel Ltd (Communication Services)
Equity, Since 31 Jan 17 | BHARTIARTL6% ₹4,274 Cr 25,000,000 ICICI Bank Ltd (Financial Services)
Equity, Since 28 Feb 17 | ICICIBANK6% ₹4,201 Cr 33,000,000 07.18 Goi 14082033
Sovereign Bonds | -5% ₹3,713 Cr 361,335,900
↓ -20,000,000 State Bank of India (Financial Services)
Equity, Since 28 Feb 14 | SBIN5% ₹3,467 Cr 44,000,000 HDFC Bank Ltd (Financial Services)
Equity, Since 31 May 11 | HDFCBANK4% ₹3,291 Cr 19,000,000 Solar Industries India Ltd (Basic Materials)
Equity, Since 31 Jul 16 | SOLARINDS4% ₹3,128 Cr 2,712,744
↓ -48,262 InterGlobe Aviation Ltd (Industrials)
Equity, Since 31 Jan 22 | INDIGO4% ₹2,825 Cr 5,900,000 Divi's Laboratories Ltd (Healthcare)
Equity, Since 30 Apr 16 | DIVISLAB4% ₹2,722 Cr 5,000,000 Bajaj Finance Ltd (Financial Services)
Equity, Since 30 Sep 16 | 5000343% ₹2,542 Cr 3,300,000
Thus, from the above pointers, it can be said that there are a lot of differences between both the schemes. However, individuals need to be very careful while choosing any of the schemes for investment. They should understand its modalities completely and check whether it is in-line with their objectives or not. If required, people can even consult a financial advisor. This will help them to choose the right scheme and achieve their objectives in a timely manner.