Fincash » HDFC Hybrid Equity Fund Vs Tata Hybrid Equity Fund
Table of Contents
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 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 (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 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.
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.
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) Tata Hybrid Equity Fund
Growth
Fund Details ₹432.052 ↑ 3.39 (0.79 %) ₹4,137 on 31 Oct 24 8 Oct 95 ☆☆☆ Hybrid Hybrid Equity 22 Moderately High 0 1.93 0.16 0.9 Not Available 0-365 Days (1%),365 Days and above(NIL)
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.
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% Tata Hybrid Equity Fund
Growth
Fund Details -0.5% -2.6% 6.9% 21.9% 13.3% 14.4% 15%
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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.
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% Tata Hybrid Equity Fund
Growth
Fund Details 16.2% 7.9% 23.6% 10.9% 6.9%
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.
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. Tata Hybrid Equity Fund
Growth
Fund Details ₹150 ₹5,000 Murthy Nagarajan - 7.59 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 Tata Hybrid Equity Fund
Growth
Fund Details Growth of 10,000 investment over the years.
Date Value 30 Nov 19 ₹10,000 30 Nov 20 ₹10,494 30 Nov 21 ₹13,479 30 Nov 22 ₹15,011 30 Nov 23 ₹16,122 30 Nov 24 ₹19,604
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 Tata Hybrid Equity Fund
Growth
Fund Details Asset Allocation
Asset Class Value Cash 4.14% Equity 76.89% Debt 18.97% Other 0% Equity Sector Allocation
Sector Value Financial Services 18.5% Industrials 8.28% Consumer Cyclical 6.69% Energy 6.52% Technology 6.46% Consumer Defensive 6.45% Health Care 6.42% Communication Services 6.09% Basic Materials 5.59% Utility 4.24% Real Estate 1.65% Debt Sector Allocation
Sector Value Corporate 9.71% Government 9.26% Cash Equivalent 4.14% Credit Quality
Rating Value AA 11.53% AAA 88.47% Top Securities Holdings / Portfolio
Name Holding Value Quantity HDFC Bank Ltd (Financial Services)
Equity, Since 30 Jun 08 | HDFCBANK7% ₹286 Cr 1,650,000 Reliance Industries Ltd (Energy)
Equity, Since 31 Jan 16 | RELIANCE6% ₹260 Cr 880,000 Bharti Airtel Ltd (Communication Services)
Equity, Since 31 May 20 | BHARTIARTL5% ₹231 Cr 1,350,000 ICICI Bank Ltd (Financial Services)
Equity, Since 31 Aug 16 | ICICIBANK4% ₹165 Cr 1,300,000 State Bank of India (Financial Services)
Equity, Since 29 Feb 16 | SBIN4% ₹165 Cr 2,100,000 Tata Consultancy Services Ltd (Technology)
Equity, Since 31 Aug 17 | TCS4% ₹162 Cr 380,000 Larsen & Toubro Ltd (Industrials)
Equity, Since 30 Nov 16 | LT4% ₹159 Cr 431,425 Infosys Ltd (Technology)
Equity, Since 30 Nov 13 | INFY3% ₹116 Cr 620,000 PI Industries Ltd (Basic Materials)
Equity, Since 31 Dec 23 | PIIND2% ₹104 Cr 223,500 Varun Beverages Ltd (Consumer Defensive)
Equity, Since 28 Feb 19 | VBL2% ₹103 Cr 1,695,375
Thus, from the above parameters, it can be said that there exist numerous differences between HDFC Hybrid Equity Fund and Tata Hybrid Equity Fund based on various parameters. However, individuals should be careful while investing in any of the schemes. They should understand the parameters of the scheme completely and if required should seek opinion of a financial advisor. This will help them to achieve their goals on time and in a hassle-free manner.