Is my father's investment in HDFC Prudence Fund good

HDFC Prudence Fund is a very popular Fund and also the biggest fund (in terms of AUM) in the balanced fund category. One of the reasons behind the fund's popularity is because of its monthly dividend payment option which is liked by investors looking for regular return from their investments.

However, if you see the performance of the fund, it is not among the top performers in the balanced fund category - Please check this https://www.advisorkhoj.com/mutual-funds... As you can see another fund, HDFC Balanced Fund from the same AMC is a much better performer. The other top performers are ICICI Prudential Balanced Fund, SBI Magnum Balanced Fund, Birla Sun Life Balanced Fund, L&T India Prudence Fund and Reliance regular Savings Fund Balanced option.

We feel that even though your father is receiving regular monthly dividend from this fund, the overall return of this fund is not as good as its top performing peers which you see in the above link.

Please note that we are based out of Bangalore and do not have any presence in any other city.

Thanks for writing to Advisorkhoj.