HDFC Hybrid Equity Fund Vs Tata Hybrid Equity Fund

HDFC Hybrid Equity Fund and Tata Hybrid Equity Fund both the schemes belong to Balanced Fund equity category. These schemes invest their corpus in both equity as well as fixed Income instruments. Balanced Funds are suitable for individuals seeking regular income along with Capital appreciation. In Balanced funds, the investment proportion with respect to equity and debt instruments is pre-determined and may change over time. Balanced Funds are a good investment option for medium and long-term investments. Balanced Funds have generated good returns in many instances. Though HDFC Hybrid Equity Fund and Tata Hybrid Equity Fund both belong to the same category, there are differences between both the schemes based on both the parameters. So, let understand the differences between both the schemes.

HDFC Balanced Fund (Erstwhile HDFC Hybrid Equity Fund)

HDFC Hybrid Equity Fund is a part of HDFC Mutual Fund. it is an open-ended balanced fund scheme that was incepted on September 11, 2000. The objective of this scheme is to attain capital appreciation in the long-run combined with regular income. This capital appreciation and income generation is achieved by Investing the scheme’s corpus in a Portfolio comprising of equity and Fixed Income instruments. As on March 31, 2018, some of the top constituents of HDFC Hybrid Equity Fund’s portfolio consisted of HDFC Bank Limited, Infosys Limited, ICICI Bank Limited, and Voltas Limited. HDFC Hybrid Equity Fund is jointly managed by Mr. Chirag Setalvad and Mr. Rakesh Vyas. In a normal situation, the scheme would invest around 60% of its corpus in equity instruments while the remaining amount would be invested in fixed income instruments.

Tata Hybrid Equity Fund (Erstwhile Tata Balanced Fund)

Tata Hybrid Equity Fund (earlier known as Tata Balanced Fund) is managed and offered by Tata Mutual Fund. This open-ended hybrid-equity Mutual Fund was launched in the year 1995. The objective of this scheme is to cater individuals with income distribution over a time horizon of medium to long-term. However, at each time, its emphasis is on capital appreciation. The Fund managers managing the Tata Hybrid Equity Fund are Mr. Pradeep Gokhale and Mr. Murthy Nagarajan. Tata Hybrid Equity Fund tries to enhance the returns of the portfolio along with managing the Volatility of the scheme. The scheme uses CRISIL Hybrid 35+65 Index as its benchmark to construct its portfolio. As on March 31, 2018, some of the top 10 equity holdings of Tata Hybrid Equity Fund included HDFC Bank Limited, Reliance Industries Limited, Yes Bank Limited, and Zee Entertainment Enterprises Limited.

HDFC Hybrid Equity Fund Vs Tata Hybrid Equity Fund

HDFC Hybrid Equity Fund and Tata Hybrid Equity Fund both the schemes belong to balanced category, however, there are differences between both the schemes have different attributes. So, let us understand the differences between HDFC Hybrid Equity Fund and Tata Hybrid Equity Fund based on various parameters such as Fincash Ratings, Current NAV, AUM, and many more. These parameters are divided into four sections, namely, Basics Section, Performance Section, Yearly Performance Section, and Other Details Section.

Basics Section

The parameters that form part of basics section include Current NAV, Fincash Ratings, and Scheme Category. To begin with the scheme category, it can be said that both the schemes belong to the same category, that is, Hybrid Balanced – Equity. The comparison of Fincash Ratings states that, HDFC Hybrid Equity Fund is rated as 5-Star while Tata Hybrid Equity Fund is rated as 3-Star. With respect to the Current NAV, it can be said that there are differences between both the schemes. As on April 13, 2016, the NAV of HDFC Hybrid Equity Fund was approximately INR 149 while of Tata Hybrid Equity Fund was approximately INR 206. The summary of the basics section is as shown in the given below.

Performance Section

It is the second section in the comparison of both the schemes. In this section, the Compounded Annual Growth Rate or CAGR returns of both the schemes at different time intervals are compared. The various time intervals include 1 Month Return, 6 Month Return, 3 Year Return, 5 Year Return, and Return since Inception. The comparison of performance section shows that there is not much significant difference between the returns generated by both the schemes though, in almost all the instances, HDFC Hybrid Equity Fund leads the race. The summary comparison of the performance section is tabulated as follows.

Yearly Performance Section

The yearly performance section compares the absolute returns between the schemes for a particular year. It is the third section in comparison of both the schemes. In case of yearly performance section too, the comparison shows that HDFC Hybrid Equity Fund leads the race. The table given below shows the summary comparison of yearly performance section.

Other Details Section

The other details section is the last section in comparison of both the schemes. The comparable elements that form part of the Other Details section include AUM, minimum SIP investment, and minimum lumpsum investment. With respect to the AUM of both the schemes, it can be said that there is a considerable difference between the AUMs of them. As on March 31, 2018, the AUM of HDFC Hybrid Equity Fund was approximately INR 20,191 crores while of Tata Hybrid Equity Fund was approximately INR 5,371 crores. The minimum SIP investment for both the schemes is same, that is, INR 500. Similarly, even the minimum lump sum investment for both the schemes is same, that is, INR 5,000. The summary of other details section is as shown below.

Growth of 10k Investments over the years