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Saving on mutual funds can make you wealthy over a period of time. The HDFC balanced advantage fund offers a balanced approach to investing. It uses both equity and debt securities in order to minimize risk yet at the same time focuses on generating stable rates of return.
Another fund from the same house, the HDFC Flexi Cap Fund, provides diversification across market capitalizations. Combined, these funds are made to meet the needs of investors with varying financial objectives.
What Is the HDFC Balanced Advantage Fund?
The HDFC Balanced Advantage Fund is a dynamic asset allocation fund. It floats both its equity as well as debt. A fund will alter its equity investment with regard to the market landscape.
This flexibility is crucially important in controlling the risk during oscillations in the market. As a result, it strives to provide steady and sustainable enough returns in the longer run.
Key Features of the Fund
Dynamic Asset Allocation
The fund covers equities and debts to achieve the best risk/return outcome.
Market-Driven Strategy
It amplifies the exposure to equity in the least expensive markets and decreases the exposure in the most expensive markets.
Tax Efficiency
For taxation, the fund is classified as an equity fund.
What Is the HDFC Flexi Cap Fund?
The HDFC flexi cap fund is another versatile mutual fund. It invests in big, medium, and small capitalizations of stocks. The fund manager has flexibility in the sort of market capitalization exposures he makes with the fund because of opportunities.
This position’s flexibility guarantees exposure to different operation sectors and companies. It seeks to achieve the highest level of returns by diversification of investments.
Why Should You Consider Both Funds?
The HDFC Balanced Advantage Fund is ideal for conservative investors. Equity markets are its special feature while it gives fixed income through debt investments.
The HDFC Flexi Cap Fund is suitable for aggressive investors. It strives to attain these higher returns through diversification in market capitalization.
Holding both kinds of funds is a good thing because it is balanced and has potential for growth. They can be easily synchronized with your risk tolerance and the targets on your financial report.
Conclusion
The HDFC Balanced Advantage Fund and HDFC Flexi Cap Fund offer unique benefits. They help those investors who expect to take different risks and want to achieve various objectives.
The former is balanced, thus operating with stability. The dynamic diversification of the latter offers growth opportunity. When such funds are combined, it is easy to create a portfolio of asset classes that are quite diversified.
Develop your wealth now; plan well for the future with a variety of exciting and flexible funds.
