In this edition of the fund performance report, we review HDFC Hybrid Equity Fund. In a baffling and messy response to the SEBI categorisation rules, HDFC decided to close both its balanced funds, HDFC Balanced and HDFC Prudence and merge them with unknown funds!
From June 1st 2018, HDFC Balanced and its AUM merged with HDFC premium multi-cap and then renamed HDFC Hybrid Equity Fund. HDFC Prudence also met a similar fate and became a balanced advantage fund. HDFC Hybrid Equity Fund currently has an AUM of Rs. 17,192 Crores.
Disclaimer: Fund performance reports present return and risk analysis of a fund with representative benchmarks and not investment recommendations. It must be expressly understood that the data below reflect only past performance and is in no way an indication of future performance. Our investment recommendations can be found here: Handpicked List of Mutual Funds (PlumbLine).
Disclosure: HDFC Hybrid Equity is part of my retirement portfolio. For details, see Fourteen Years of Mutual Fund Investing: My Journey and lessons learned.
We find out how consistently the Fund has performed wrt Nifty 100 TRI and CRISIL 65:35 Aggressive Hybrid Index. We will use three metrics to analyze performance consistency versus benchmarks. Analysis such as this can be found for 350+ equity funds in our monthly mutual fund screener.
🔥Secure your future with our Robo-advisory tool trusted by over 3,500 investors and advisors. From effortless retirement planning to funding your children’s biggest dreams, turn your financial goals into reality. 🔥
Subscribe for money management solutions via email! (Link takes you to our email sign-up form) Join 32,000+ readers in our community.
👉 New Tool Alert! NaviPlan: A Privacy-Focused Multi-asset Tracker and Goal Planner 👈
1 Rolling return outperformance consistency: the fund returns are compared with category benchmark returns over every possible 3Y,4Y, and 5Y period. Higher the outperformance consistency, the better. Suppose 876 fund returns were compared with 876 benchmark returns, and the fund has beaten the benchmark 675 times. The consistency score will be 675/876 ~ 77%.
Three years
| Metric | Nifty 100 TRI | Crisil6535 |
| No of rolling return entries Index (3 Years) | 1626 | 2263 |
| No of rolling return entries Fund (3 years) | 1626 | 2263 |
| No of times the fund has outperformed the index (3 years) | 702 | 1483 |
| rolling return outperformance Consistency Score (3 years) | 43% | 66% |
Four years
| Metric | Nifty 100 TRI | Crisil6535 |
| No of rolling return entries Index (4 Years) | 1382 | 2019 |
| No of rolling return entries Fund (4 years) | 1382 | 2019 |
| No of times the fund has outperformed the index (4 years) | 702 | 1133 |
| rolling return outperformance Consistency Score (4 years) | 51% | 56% |
Five years
| Metric | Nifty 100 TRI | Crisil6535 |
| No of rolling return entries Index (5 Years) | 1132 | 1672 |
| No of rolling return entries Fund (5 years) | 1132 | 1672 |
| No of times the fund has outperformed the index (5 years) | 646 | 1059 |
| rolling return outperformance Consistency Score (5 years) | 57% | 63% |
It is just about average to above-average performance. Which is not too shabby, considering spectacular outperformance does not last forever.
2 Upside performance consistency over every possible 1Y,2Y,3Y,4Y, 5Y: Higher the better. A score of 70% means, 7 out of 10 times, the Fund performed better than the category benchmark when the benchmark was moving up. This is a measure of reward. It is computed from rolling upside capture data (see link below).
| Metric | Nifty 100 TRI | Crisil6535 |
| upside performance consistency (3 years) | 46% | 97% |
| upside performance consistency (4 years) | 49% | 96% |
| upside performance consistency (5 years) | 47% | 98% |
The fund generally tends to do well when the hybrid index is on the way up.
3 Downside performance consistency over every possible 3Y,4Y, 5Y. Higher, the better. A score of 60% means, 6 out of 10 times, the Fund performed better than the category benchmark when the benchmark was moving down. This is a measure of risk protection. It is computed from rolling downside capture data. Read more: An introduction to Downside and Upside Capture Ratios.
| Metric | Nifty 100 TRI | Crisil6535 |
| downside protection consistency (3 years) | 96% | 65% |
| downside protection consistency (4 years) | 100% | 69% |
| downside protection consistency (5 years) | 100% | 67% |
Downside protection wrt Nifty 100 is not a fair comparison as the benchmark does not have any bonds, so we discount that.
Curiously HDFC Hybrid Equity tends to favour upside capture (doing better than the hybrid index when the latter is moving up) to downside capture (doing better than the hybrid index when the latter is going down). However, on its own, the downside, protection consistency is reasonably good. Not many funds can replicate this behaviour.
In summary, HDFC Hybrid Equity has displayed unspectacular but “reasonably acceptable” performance wrt a hybrid index. The fund is suitable for mature investors who prefer a quiet, average or above-average performer to a short-lived star.
We are on Google News
Use this button to add freefincal.com as a preferred personal finance source on Google News.
Explore 1,400+ videos on YouTube!
Subscribe to get posts via email!
Join 32,000+ readers and get free money management solutions delivered to your inbox! (Link takes you to our email sign-up form)Join our WhatsApp Channel
Explore our products
🔥Join our community of 9000+ users! 🔥- Use our Robo-advisory Tool to create a complete financial plan! More than 3,500 investors and advisors use this! Use the discount code robo25 for 20% off. Plan your retirement (early, normal, before, and after), plus non-recurring financial goals (such as child education) and recurring financial goals (such as holidays and appliance purchases). The tool helps anyone aged 18 to 80 plan for retirement, plus six non-recurring and four recurring financial goals, with a detailed cash flow summary.
- Our Flagship Course! Learn to manage your portfolio like a pro to achieve your goals regardless of market conditions! More than 3,500 investors and advisors are part of our exclusive community! Get clarity on how to plan for your goals and achieve the necessary corpus no matter the market conditions! Watch the first lecture for free! One-time payment! No recurring fees! Lifelong access to videos! Reduce fear, uncertainty and doubt while investing! Learn how to plan for your goals before and after retirement with confidence.
- Join the freefincal investor circle! An exclusive space for investors, advisors, fintech employees and students to access financial planning and insurance tools, mutual fund and stock analysis tools, coding strategies and Excel macros for data extraction. 750+ members are now part of our investor circle.
- Increase your income by getting people to pay for your skills! More than 900 salaried employees, entrepreneurs and financial advisors are part of our exclusive community! Learn how to get people to pay for your skills! Whether you are a professional or small business owner seeking more clients through online visibility, or a salaried individual looking for side or passive income, we will show you how to do it by showcasing your skills and building a community that trusts and pays you. (Watch the 1st lecture for free). One-time payment! No recurring fees! Lifelong access to videos!
- Portfolio Tracker! Track your mutual funds and stock investments with our Google Sheet!
- We also publish monthly screeners for
Our Podcast: Let's Get Rich With Pattu
On Spotify: Let's Get RICH With PATTU! Every single Indian CAN grow their wealth! On Audible: Listen to the Let's Get Rich with Pattu Podcast
Listen to the Let's Get Rich With Pattu podcast on YouTube.
Now watch Let's Get Rich With Pattu தமிழில் (in Tamil)!About The Author
Dr M Pattabiraman giving a lecture
- Dr M. Pattabiraman (PhD) is the founder, managing editor and primary author of freefincal. He is an associate professor at the Indian Institute of Technology, Madras.
- He has over 14 years of experience publishing news analysis, research and financial product development. He has over 28 years of teaching and research experience. He is also a public speaker and keynote presenter.
- He is a patron and co-founder of “Fee-only India,” an organisation promoting unbiased, commission-free, AUM-independent investment advice.
- Connect with him via @pattufreefincal on X LinkedIn YouTube
- Pattabiraman has co-authored three print books.
This book helps you ask the right questions and find the right answers. It also includes nine online calculators to create custom solutions.
(2) Gamechanger: Forget Startups, Join Corporate & Still Live the Rich Life You Want. 
Both the boy and girl versions of "Chinchu Gets a Superpower".
Most investor problems stem from a lack of poor decision-making. We made bad decisions and money mistakes when we started earning, and we spent years undoing them. Why should our children go through the same pain? What is this book about? As parents, what if we had to groom one ability in our children that matters not only for money management and investing but for every aspect of life? My answer: Sound decision-making. So, in this book, we meet Chinchu, who is about to turn 10. The story follows what he wants for his birthday and how his parents plan it, while also teaching him key ideas about decision-making and money management. What readers say! 
Feedback from a young reader after reading Chinchu Gets a Superpower!
Must-read book even for adults! This is something that every parent should teach their kids right from a young age. The importance of money management and decision-making based on their wants and needs. Very nicely written in simple terms. - Arun.
About freefincal & its content policy
Freefincal is a News Media organisation dedicated to providing original analysis, reports, reviews and insights on mutual funds, stocks, investing, retirement and personal finance developments. We do so without conflict of interest and bias. Follow us on Google News. Freefincal serves more than three million readers a year (5 million page views) with articles based only on factual information and detailed analysis by its authors. All statements made will be verified with credible and knowledgeable sources before publication. Freefincal does not publish paid articles, promotions, PR, satire or opinions without data. All opinions will be inferences backed by verifiable, reproducible evidence/data. Contact Information: To get in touch, please use our contact form. (Sponsored posts or paid collaborations will not be entertained.)Our publications
- Your Ultimate Guide to Travel. This is an in-depth exploration of vacation planning, including how to find affordable flights, budget accommodations, and practical travel tips. It also examines the benefits of travelling slowly, both financially and psychologically, with links to relevant web pages and guidance at every step. Get the PDF for Rs 300 (instant download)
- How to profit from content writing: Our ebook is for those interested in getting a side income via content writing. It is available at a 50% discount for Rs. 500 only!