HDFC Prudence Fund, Growth Fund merge into HDFC Balanced Advantage Fund

HDFC Mutual Fund is merging HDFC Prudence Fund and HDFC Growth Fund into HDFC Balanced Advantage Fund. HDFC Prudence Fund is a large balanced scheme that manages assets worth Rs 36,594 crore as on March 31. HDFC Growth Fund is a largecap scheme that manages assets worth Rs 1,129 crore. HDFC Balanced Advantage will be classified as an open-ended balanced advantage fund.

Balance Advantage Fund may invest up to 100 per cent in equity and equity-related instruments, up to 100 per cent in debt securities and money market instruments, up to 10 per cent in units issued by REITs and InvITs and up to 10 per cent in non-convertible preference shares.

The scheme may also invest up to 35 per cent of its total assets in investment avenues in overseas financial markets via ADRs/ GDRs and foreign securities for the purpose of diversification. The scheme is also allowed to invest up to 100 per cent of its total assets in derivatives and will be benchmarked against NIFTY 50 Hybrid Composite Debt 65:35 Index.


The scheme will be managed jointly by Prashant Jain, and Rakesh Vyas, who would manage the overseas assets.

The AMC allows existing unit holders of HDFC Prudence Fund, who do not wish to continue with the scheme, to exit the scheme without any exit load between May 3 and June 1.

HDFC Prudence has a total unclaimed dividend and redemption amount of Rs 6.85 crore.

These changes have been approved by Sebi and the changes will become effective from the close of business hours on June 1.