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Future of HDFC Prudence

Amit Kher is concerned about HDFC Prudence’s performance & asks our opinion about its future

About three years ago, HDFC Prudence fund was one of the top rated funds for a long time. I had made it my core investment option as I was comfortable with its ratio of debt and equity. However, it is not performing as well these days and it has also sunk to a 3-star rating. What is your opinion about the future of this fund?
-Amit Kher

The fund had delivered impressively till 2006 but since 2007 its performance has been about average. The primary reason for such a performance is its determination to hold on to higher equity even in today’s falling market. With equities suffering the brunt of turbulent market conditions, this move has hit the fund.

The fund’s average performance since the last two years makes it just about a reasonable offering. There are better balanced funds in the market.

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