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Prudence v/s Balanced

HDFC Prudence & HDFC Balance are both consistent & highly-rated funds…

What is the difference between HDFC Prudence and HDFC Balanced fund? Both appear to have same objective and provide similar returns over. Which one would you advice to invest in as part of the core portfolio holding?
- V Krishna Giri

Both HDFC Prudence and HDFC Balanced are funds with over 60 per cent equity exposure over the last one year and fall in the Value Research equity-oriented hybrid fund category. As per the scheme details HDFC Prudence has up to 75 per cent allocation to equity compared to HDFC Balanced fund’s 60 per cent allocation. This is reflected in its returns compared to HDFC Balanced. However, both are good consistent funds and highly rated by us and can find their way into the core holdings of a conservative investor.

Schemes  Category  Rating  3-yrs ret (%)  5-yrs ret (%)
HDFC Prudence Hybrid: Equity-oriented ***** 17.32 16.64
HDFC Balanced Hybrid: Equity-oriented **** 16.04 13.15
Returns as on May 12, 2011 Ratings as on April 30, 2011

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