GEMGAZE

January 2020

The consistent performance of four funds in the January 2019 GEMGAZE is reflected in those funds holding on to their esteemed position of GEM in the January 2020 GEMGAZE. Tata Hybrid Fund, in view of its lacklustre performance, has been shown the exit door.

HDFC Balanced Advantage Fund (formed from the merger of erstwhile HDFC Prudence Fund and HDFC Growth Fund) Gem

HDFC Balanced Advantage Fund is the largest fund in the category with assets amounting to Rs 44,497 crore. The fund, managed by Prashant Jain, widely regarded as one of the most competent money managers, has delivered an annualised return of 18.01% since its inception. HDFC Balanced Advantage Fund, with its long-standing stellar track record of delivering 11.73% compounded annually over the last 10 years, towers over the category average of 9.25% annually over the same period. Over a three- and five-year horizon, the fund returned an annualised return of 8.56% and 7.49%, respectively as against the category average returns of 8.19% and 7.09%, respectively, over the same period. The fund earned a return of 4.92% in the past one year as against the category average of 7.55%. But in the past 3 months the returns have been 6.17% as against the category average of 4.19%. The allocation to a single stock has been capped at around 9.37%, with the highest currently allocated to SBI Bank. There are 69 stocks in the portfolio and the top three sectors are finance, energy, and construction, which constitute 57.19% of the portfolio. The portfolio turnover is 11.38% and it has an expense ratio of 1.81%. The fund is benchmarked against NIFTY 50 Hybrid Composite Debt 65:35.

ICICI Prudential Equity and Debt Fund (erstwhile ICICI Prudential Balanced Fund) Gem

Launched in November 1999, ICICI Prudential Equity and Debt Fund is a very popular product in this category. The fund has earned a return of 8.34% over the past one year as against the category average of 8.67%. The three-year and five-year returns are more than the category average of 9.11% and 7.75%, respectively at 9.36% and 8.97%, respectively. The fund has 72.3% of its portfolio invested in equity comprising 91 stocks. This Rs 23,501 crore fund has 39.92% of the portfolio in the top three sectors finance, energy and metals. The fund has traditionally featured a high equity allocation, hovering at well over 70%, and it continues to maintain it at 72.3% of the portfolio. In terms of style, the fund follows a blend of growth and value styles. Traditionally, the equity portfolio has been mid-cap biased. But in the last one year, its weight has veered sharply towards large-cap stocks. The fund is now significantly overweight on large-caps relative to the category. The expense ratio of the fund is 1.71%. The fund is benchmarked against CRISIL Hybrid 35+65 Aggressive. Sankaran Naren, the veteran fund manager, manages this fund along with Manish Banthia and Atul Patel.

Nippon India Equity Hybrid Fund (erstwhile Reliance Regular Savings Fund renamed as Reliance Equity Hybrid Fund)   Gem

Nippon India Equity Hybrid Fund is an equity-oriented balanced fund with 73% of the assets in equity. The one-year return of this Rs 8,335 crore fund is 4.03% as against the category average of 8.84%. The fund returned 8.06% and 7.45% respectively, as against the category average of 8.91% and 7.77% during a three- and five-year period. 51.93% of the portfolio is in the top three sectors, finance, construction and energy. The fund has a very compact portfolio of 51 stocks. The fund is benchmarked against CRISIL Hybrid 35+65 Aggressive. The expense ratio of the fund is 1.82%. The fund is managed by Mr. Amit Tripathi and Mr Sanjay Parekh.

Canara Robeco Equity Hybrid Fund (erstwhile Canara Robeco Balanced Fund renamed as Canara Robeco Equity Debt Allocation Fund) Gem

Canara Robeco Equity Hybrid Fund is the oldest balanced fund that has exhibited smooth sailing across market cycles. The one-year return of the fund is 12.58% as against the category average of 8.84%. The fund’s three-year and five-year returns of 11.78% and 9.24% respectively are higher than the category average of 8.91% and 7.77% respectively. Canara Robeco Equity Hybrid Fund has 49 stocks in the portfolio. 38.12% of the portfolio is in the top three sectors, concentrated in finance, technology and energy sectors. The good performance of Canara Robeco Equity Hybrid Fund across market cycles is attributable to its bias towards safety and stability. This is reflected in the significant proportion of large-cap stocks in its portfolio. The fund is benchmarked against CRISIL Hybrid 35+65 Aggressive. The expense ratio of this Rs 2,824 crore fund is 2.05% with a portfolio turnover ratio of 165%. The fund is managed by Mr. Avnish Jain, Mr Shridatta Bhandwaldar and Mr. Cheenu Gupta.