SBI Equity Hybrid Fund Vs ICICI Prudential Balanced Advantage Fund

SBI Equity Hybrid Fund and ICICI Prudential Balanced Advantage Fund both the schemes form part of equity-oriented balanced funds. Balanced Funds, in simple terms, are the schemes that enjoy the benefits of equity and debt instruments. Balanced funds invest their corpus in both equity and fixed income instruments in a pre-determined proportion that can change over time. Balanced Funds are a good option for investors seeking capital appreciation over a long-term tenure along with regular income. Equity-oriented balanced funds invest a minimum of 65% or more of their fund money in equity and equity-related instruments of various companies. Though ICICI Prudential Balanced Advantage Fund and SBI Equity Hybrid Fund belong to the same category, nevertheless; there are numerous differences between them. So, let’s understand the differences between these schemes through this article.

ICICI Prudential Balanced Advantage Fund

ICICI Prudential Balanced Advantage Fund is a part of ICICI Prudential Mutual Fund and was incepted on December 30, 2006. ICICI Prudential Balanced Advantage Fund strives for growth along with safety. It tries to achieve this goal by Investing its corpus in a combination of equity and fixed income investments. CRISIL Hybrid 35+65- Aggressive Index is used by the scheme to build its basket of assets. Eicher Motors Limited, Maruti Suzuki India Limited, Ambuja Cements Limited, and Godrej Properties Limited are some of the constituents of ICICI Prudential Balanced Advantage Fund’s Portfolio as on March 31, 2018. The scheme is jointly managed by Mr. Sankaren Naren, Mr. Rajat Chandak, and others. The risk-appetite of ICICI Prudential Balanced Advantage Fund is moderately high.

SBI Equity Hybrid Fund (Erstwhile SBI Magnum Balanced Fund)

SBI Equity Hybrid Fund (earlier known as SBI Magnum Balanced Fund) is jointly looked after by Mr. R. Srinivasan and Mr. Dinesh Ahuja and is managed and offered by SBI Mutual Fund. This scheme was launched in the month of December 1995. The objective ofSBI Equity Hybrid Fund is to strive for capital growth in long-term by investing in Equity Funds. Along with capital growth, liquidity by investing in a combination of debt funds. SBI Equity Hybrid Fund is suitable for individuals seeking advantages from the potential growth of equities without having complete exposure. The scheme uses CRISIL Balanced Fund – Aggressive Index as its yardstick to construct its portfolio. Based on the Asset Allocation of the scheme, it invests a minimum of 50% of its accumulated fund money in equity and equity-related instruments. Also, it would not invest more than 40% of its corpus in fixed income and money market instruments.

ICICI Prudential Balanced Advantage Fund Vs SBI Equity Hybrid Fund

Though both the schemes belong to the scheme category, nevertheless; they differ on account of numerous parameters, such as AUM, performance, and so on. So, let us analyse the differences between these schemes by comparing the parameters that are divided into four sections, namely, basics section, performance section, yearly performance section, and other details section.

Basics Section

Current NAV, Fincash Rating, scheme category, and others are some of the comparable elements forming part of this first section. To begin with the current NAV, it can be stated that both the schemes differ drastically. The NAV of SBI Equity Hybrid Fund was around INR 127 and of ICICI Prudential Balanced Advantage Fund was nearly INR 33 as of April 26, 2018. The comparison of Fincash Rating states that * ICICI Prudential Balanced Advantage Fund is rated as a 3-Star Scheme while SBI Equity Hybrid Fund is rated as a 4-Star Scheme*. With respect to the scheme category, it can be said that form schemes are part of Hybrid Balanced – Equity category. The comparison summary of the basics section is tabulated below.

Performance Section

The Compounded Annual Growth Rate or CAGR returns at different time intervals are compared in the performance section. The comparison of performance section reveals that there is a significant difference between both the returns generated by both the schemes. In many of these instances, the returns generated by SBI Equity Hybrid Fund is higher as compared to the returns of ICICI Prudential Balanced Advantage Fund. The table given below summarizes the comparison of performance section.

Yearly Performance Section

This section compares the absolute returns earned by both the schemes for a particular year. The comparison of yearly performance also states that in many years, SBI Equity Hybrid Fund leads the race. The table given below summarizes the comparison of yearly performance section.

Other Details Section

Being the last section of comparison it includes parameters like AUM, minimum SIP investment, Minimum lumpsum investment, and so on. The minimum SIP investment for both the schemes is different. For SBI Mutual Fund’s scheme, the SIP amount is INR 500 and in case of ICICI Prudential Balanced Advantage Fund, the SIP amount is INR 1,000. Additionally, the lumpsum investment, the amount is also different. The lumpsum amount for SBI Equity Hybrid Fund is INR 1,000 and for ICICI Prudential Balanced Advantage Fund is INR 5,000. The AUM of both the schemes is also different though the difference isn’t much. As on March 31, 2018, the AUM of SBI’s scheme is around INR 21,802 Crores and of ICICI’s scheme is nearly INR 26,050 crores. The summary of other details section as shown in the table given below.

Growth of 10k Investments over the years