InvestorQ : I am planning to invest - HDFC opportunities fund or HDFC Balanced Fund?
Rashi Mehra made post

I am planning to invest - HDFC opportunities fund or HDFC Balanced Fund?

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vidhya Laxmi answered.
9 months ago
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We understand that the first scheme in question is HDFC Mid-Cap Opportunities Fund. If so, then both the schemes are incomparable on almost all the key parameters. Mid-Cap based funds are equity funds while Balanced funds invest in both equity as well as debt instruments.

Mid-cap based schemes are generally recommended to those investors who have the very risk appetite and long investment horizon say at least 7 years. On the other hand, Balanced funds are suitable for investors with moderate risk appetite with at-least 3-5 years of the investment horizon. Therefore, an investor needs to choose an investment option based on his risk profile, investment horizon and align it to a realistic financial goal.

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9 months ago
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If you look at different parameters for comparison, there is none. However, if you are looking for options to invest and cannot decide between the two, here’s what you need to know about both the funds.

HDFC Mid-Cap Opportunities fund: This fund majorly invests in equity and in companies with moderate market capitalization. The fund has 92.44% investment in Indian stocks, of which around 3.11% is in large-cap stocks and the major part say, 61.25% is in mid-cap stocks. It also invests a portion of small-cap stocks of about 22.16%. The fund also invests about 1.42% in very low-risk debt securities. This investment is suitable for investors who are looking to invest for a minimum period of 3-4 years and expect higher returns. However, these investors should also have a moderate risk profile.

HDFC Balanced Advantage Fund: I’m considering this fund because the actual HDFC balanced fund has been inactive and this is another balanced fund. This fund generally invests both in equity and debt. The fund has about  80.1% investment in Indian stocks out of which 65.79% is in large-cap stocks, 7.78% in mid-cap stocks, 5.92% in small-cap stocks. The fund invests 17.02% in debt funds, out of which 15.68% is invested in very low-risk securities. The fund is appropriate for those who are looking for better returns even in a short duration. However, the investment in the fund involves higher than moderate risk.
Now, you know what both the funds are about, so you can decide your desired fund according to your financial needs and investment goals.
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