Choice between HDFC Balanced and HDFC Prudence

POSTED BY sunil ON May 26, 2013 10:03 pm COMMENTS (8)

Dear All,

I have a goal in 5 years for which i have to go with a balanced fund..

While observing HDFC Prudence and HDFC Balanced, i am confused… both look alike (Prudence having less expense ratio). No significant difference in the portfolio struture….

 

Any thought process on which would be better (compared to the other one).

Thanks in Advance,

Sunil.

8 replies on this article “Choice between HDFC Balanced and HDFC Prudence”

  1. sunil says:

    Thanks Everyone.

    Special thanks to Be Money Aware….
    I will go with HDFC Prudence over Balanced.

    1. bemoneyaware says:

      You are welcome Sunil. Your question made me think a lot – that’s the worst part about investing in mutual fund so many choices 🙁
      Just was wondering what made you choose HDFC Prudence over Balanced?

  2. Lakshmipathy G says:

    BeMoneyAware,

    Thanks. Excellent comparison.

  3. PrithviRaj Karnati says:

    I am also so confused to choose between HDFC Balance and ICICI balance …. later is performing good from last 3 years but HDFC balance is proved one from long time.

  4. bemoneyaware says:

    Both HDFC Prudence and HDFC Balanced appear to have same objective and provide similar returns over. But digging a little provides following information

    Nets Assets (as on 31/03/13)
    Prudence 6,162.21
    Balances 1,136.29

    Allocation:
    HDFC Prudence has up to 75 per cent allocation to equity
    HDFC Balanced fund’s 60 per cent allocation.

    Returns:
    Prudence : 1-Month 1.88 ,1-Year :13.16 ,3-Year:7.75,5-Year :12.29
    Balanced :1-Month :1.06, 1-Year :10.89,3-Year: 9.34,5-Year: 11.82

    Manager:
    Prudence : Prashant Jain, since 1994
    Balanced :Chirag Setalvad, since 2007 (fund is since 2000)

    They differ in kind of companies they invest in For example if you check the Portfolio
    Prudence: Mid caps with blend of growth and value investing
    Balanced : Mid caps with growth.

    So would you like to go with prudence or balanced?

  5. Ashis Baliyarsingh says:

    Hi Sunil,

    Both are overall same but Balanced one is slightly stable as it invests 5% in Cash while Prudence invests only 0.19% in cash.

    The returns are same in both the funds but you should not see the old returns.(Please note I have invested in HDFC Balanced but the return is not that much good as compared to ICICI Balance Fund)

    Below is a table with rankings:

    http://www.moneycontrol.com/mutual-funds/performance-tracker/returns/balanced.html

    Thanks
    Ashis

  6. Dear Sunil, pick any one of the 2. No specific choice here.

    Thanks

    Ashal

  7. sunil says:

    I have gone through the previous posts, but could not get any solid answers….. Hence this post.

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