How much monthly income can I expect from HDFC Balanced Advantage Fund

Please note that HDFC Balanced Advantage Fund is a dynamic asset allocation funds and ideal for investors with moderate risk taking appetite and also for those who are looking for regular income in the long run without taking much risk.

https://www.advisorkhoj.com/mutual-funds-research...

However, please note that assured monthly dividend from this fund or for that matter any mutual fund is not possible as mutual funds do not offer 'assured' returns or dividends.

You may go through the dividend track record of HDFC Balanced Advantage Fund from here https://www.advisorkhoj.com/mutual-funds-research... - As you can see, since June 2018, the dividend yield of the fund is approx 1% monthly. Therefore, from your investment of Rs 15 Lakhs, you may expect Rs 15,000 a month. But, as we mentioned, the dividends are not assured, and therefore, you must consider this fact before proceeding to invest in the dividend option of this fund.

You should also know two more things about mutual fund dividends - 1) Dividends are paid out of the profit made by the scheme or from the surpluses lying in the fund account. Declaring the dividend is totally the discretion of the fund manager. 2) Even though the dividend is tax free in the hands of the investor, the AMC has to pay 10% and 28.84% dividend distribution tax (DDT) respectively on equity / equity oriented funds and debt funds.

What is other option if you are not opting for dividends from mutual funds? You may go for Systematic Withdrawal Plans or SWP. Please read more about SWPs from the links we are sharing below -

https://www.advisorkhoj.com/licmf...

https://www.advisorkhoj.com/mutual-funds-research...

Please go through our reply very carefully and in detail before you start investing in mutual funds for regular income. Our suggestion is that you should try to contact a good mutual fund advisor in your city and take his help and advice in this regard.

Happy investing!