I want to know about the HDFC Prudence fund. Why don’t you recommend this fund often when it has performed well over the 3-year and 5-year periods?
-Rajesh
HDFC Prudence has given very good returns, but its equity allocation is a little too aggressive for a new investor. A new investor should seek stability from a balanced fund, which is where HDFC Prudence doesn’t score as high as some of the other balanced funds.
This article was originally published on August 31, 2012.