In a first, HDFC Mutual Fund hybrid fund's AUM tops Rs 1 trillion

HDFC BAF becomes the first hybrid MF to cross ₹1 trillion in AUM, driven by a model-based strategy, steady performance and leadership in balanced advantage category

HDFC Balanced Advantage Fund (BAF) has become the first hybrid mutual fund (MF) scheme in India to achieve the Rs 1-trillion asset milestone.

 

This achievement makes it the second actively-managed MF scheme-- after Parag Parikh Flexicap Fund-- to reach this 13-digit assets under management (AUM) mark.

 

Launched in February 1994, HDFC BAF has consistently been one of the most popular MF offerings, largely due to its steady performance and stable fund management.

 

Despite experiencing two changes in the fund house, the scheme was managed by the same fund manager for the majority of its lifetime.

 

Prashant Jain, who managed the scheme from its inception, holds the record for managing an MF scheme for the longest period in India at 28 years.

 

Initially known as Centurion Prudence Fund, the scheme was renamed Zurich India Prudence Fund in 1999 when Zurich India acquired 20th Century Mutual Fund. In 2003, HDFC AMC acquired Zurich India, leading to the scheme being renamed HDFC Prudence Fund. It became HDFC Balanced Advantage Fund in 2018 following the merger with HDFC Growth Fund.

 

After Jain’s departure from HDFC AMC in 2022, the scheme has been managed by Gopal Agarwal, Anil Bamboli, and Srinivasan Ramamurthy.

 

HDFC BAF has delivered over 18 per cent annualised returns on lump-sum investments since its inception. Systematic Investment Plan (SIP) investments have also yielded nearly 19 per cent returns.

 

Currently, the scheme leads the balanced advantage category return chart across all time-frames. As of June 13, it delivered a 23 per cent annualised return over the three-year period and a 26 per cent annualised return over the five-year period, according to Value Research data.

 

Gopal Agarwal attributes this performance to the scheme’s model-driven approach.

 

“We follow a model-driven approach to asset allocation with focus on valuation metrics, macro-economic insights and bottom-up stock selection. The model dynamically adjusts equity exposure based on changing market conditions, helping manage risk while aiming for long-term growth,” he said.