HDFC Balanced Fund (G) Underperforms The Category Average Over Most Of Time Periods

HDFC Assets Management Company Ltd. is sponsored by Housing Development Finance Corporation Limited (HDFC) and Standard Life Investment Ltd. HDFC incorporated in 1977 as the first specialized housing finance institution in India. HDFC AMC was incorporated on 10 December 1999, and today manages assets worth Rs. 46751.86 crore at the end of November 2007.

HDFC balanced Fund (G) an open-ended balanced scheme launched in July 2000.The objective of the scheme is to generate capital appreciation along with current income from a combined portfolio of equity and equity related and debt and money market instruments. The minimum investment amount is Rs.5000 and in multiples of Rs.100 thereafter. The unit NAV of the scheme was Rs.39.25 as on 18 December 2007.

Portfolio: The total net assets of the scheme decreased by Rs.0.11 crore to Rs.117.23 crore in November 2007.

HDFC balanced Fund (G) took fresh exposure to three stocks in November 2007. The scheme has purchased 40,000 units (4.02%) of ICICI Bank, 80,000 units (3.90%) of Biocon, 1,631 units (0.13%) of Mundra Port & Special Economic Zone in November 2007.

It does not completely exited from any of the scheme in November 2007.

Sector-wise, the scheme took no fresh exposure in November 2007.

Sector-wise, the scheme does not exit completely from any sector in November 2007.

The scheme had highest exposure to Reliance Industries with 32500 units (7.91% of portfolio size) followed by Balkrishna Industries with 1.17 lakh units (6.59%) and Coromandel Fertilisers with 5.61 lakh units (5.60%) among others in November 2007.

It reduced its exposure to M .M Forgings to 1.29% with holding of 1.04 lakh units (from 1.34% in October 2007), Tata Consultancy Services to 2.59% (from 2.65%) with holding 30000 units, among others in November 2007.

Sector-wise, the scheme had highest exposure to Refineries at 7.91% (from 7.71% in October 2007), followed by Pharmaceuticals - Indian - Bulk Drugs & Formulation at 7.66% (5.39%), Banks - Private Sector at 7.27% (3.33%), and Tyres at 6.59% (6.01%) among others in November 2007.

Sector wise, the scheme had reduced exposure Pharmaceuticals - Multinational to 0.73% (by 2.22%), Engineering - Turnkey Services to 5.07% (by 2.16%), Steel - Large to 4.31% (by 1.41%) and Banks - Public Sector to 4.56% (by 5.85%) in November 2007.

Performance: The scheme underperformed the category average over most of time periods. It has underperformed the Sensex over all time periods.

Over three-month period ended as on 18 December 2007, the scheme posted 18.32% returns outperforming the category average of 16.54%. It underperformed the Sensex that posted 21.77% returns during the same period.

Since inception, the scheme posted 292.54% returns underperforming the category average of 337.03%.