How come HDFC balanced advantage funds manage to give 1% monthly?
Answer 
Follow
Dividends from Mutual Funds doesn't depend on the performance of the Fund. Dividends from MF are paid from the available fund corpus on the assumption the portfolio will generate sufficient returns i.e. atleast to the extent the dividend is paid out from the fund.
In case the portfolio fails to generate the returns expected, there is high chance of investors money can get eroded over time
Please note the dividend from MFs are paid on the discretion of the fund house and may reduce depending on the market / portfolio performance.
As per my understanding that the monthly dividend yield of this fund is being referred here. Dividends are declared at the discretion of the fund house and may vary depending on the scheme's performance.
It has been observed that dividend pay-out schemes tend to pay higher dividends during the period of market outperformance. However, fund houses may reduce or may not even declare any dividends during bad market conditions.