HDFC Equity Savings Fund(G)

Performance

HDFC Equity Savings Fund is an open-ended scheme that makes investments in equity, debt, and arbitrage opportunities. The scheme, through its investments, generates income and capital growth in the medium to long term.

Investment Objective of HDFC Equity Savings Fund

HDFC Equity Savings Fund aims at providing investors with capital appreciation through investment in equity and equity-related securities, money market and debt securities, and arbitrage opportunities.

Key Features of HDFC Equity Savings Fund

Here are some of the key features of HDFC Equity Savings Fund:

Investment Amount for HDFC Equity Savings Fund

Asset Allocation for HDFC Equity Savings Fund

Who can Invest in HDFC Equity Savings Fund?

• Individuals who are above 18 years of age and residents of India
• Guardians or parents on behalf of minors
• Corporate bodies, Public Sector Undertakings, companies, Body of Individuals (BOIs), Association of Persons (AOPs), sole proprietorships, and societies that have been registered under the Societies Registration Act, 1860, as well as Co-operative societies that have been registered under the Co-Operative Societies Act, 1912
• Hindu Undivided Families (HUFs) through their Kartas
• Limited Liability Partnerships (LLPs) and Partnership firms
• Mutual funds or Alternative Investment Funds that have been registered with the Securities and Exchange Board of India
• Non-resident Indians (NRIs) and Persons of Indian Origin (POIs)
• Charitable and Religious Trusts, endowments or wakfs or private trusts and private trusts that have the authorisation to make investments in mutual funds
• Financial institutions and banks
• Foreign Portfolio Investors (FPIs) registered with the Securities and Exchange Board of India on repatriation basis
• Foreign Institutional Investors (FIIs) registered with the Securities and Exchange Board of India on repatriation basis
• Navy, Air Force, Army, and other paramilitary units
• Industrial and scientific research organisations
• Multilateral Financial Institutions or corporate bodies or Bilateral Development Corporation Agencies incorporated outside the country with the permission of the Reserve Bank of India or the Government of India
• The Asset Management Company or the sponsor or the trustee or their associates
• Other schemes of HDFC Mutual Fund provided they adhere to the regulations established and set by the Securities and Exchange Board of India
• Any other category of investors as decided by the Asset Management Company or the trustee provided they comply with the laws set by the Securities and Exchange Board of India

NAV Disclosure and Benchmark for HDFC Equity Savings Fund

The Asset Management Company will have to calculate and disclose the Net Asset Value of the scheme at the end of each business day, and the publication must be sent to a minimum of two daily newspapers. The Asset Management Company will also have to ensure that the NAV is published on the website of the company as well as the website of the Association of Mutual Funds in India. The NAV will have to be published on the company’s website as well as the website of AMFI before 9:00 p.m. every day. In case the Asset Management Company fails to update the NAV by the aforementioned time, it will have to send an explanation to the Association of Mutual Funds in India as well as to the Securities and Exchange Board of India stating the reason for the delay in updation of the NAV.

The following formula is used for the calculation of the Net Asset Value of HDFC Equity Savings Fund:

(Fair or market value of the investments made by the scheme + Current assets of the fund – Current liabilities) / Number of outstanding shares

Benchmark Index of HDFC Equity Savings Fund: 40% Nifty 50 Arbitrage Index, 30% CRISIL Short Term Bond Fund Index, and 30% Nifty 50 Index

HDFC Equity Savings Fund Fund Manager

HDFC Equity Savings Fund is managed by Mr. Vinay R Kulkarni and Mr. Krishan Kumar Daga. The latter has over 21 years of experience, and out of this collective experience, he has spent over nine years in fund management, and the remaining 12 years have been spent in equity research. Mr. Kulkarni, on the other hand, has more than 28 years of overall work experience, out of which 26 years have been spent in equity research and fund management while the other two were spent in the IT Industry.

Investment Restrictions of HDFC Equity Savings Fund

The following are the investment restriction of HDFC Equity Savings Fund:

• The fund house, through all of its schemes, is restricted from owning in excess of 10% of the voting rights of any company.
• The scheme is allowed to enter into transactions related to government securities only in the dematerialised form.
• The scheme is not allowed to advance loans to unitholders for any reason.
• The scheme is restricted from making investments over 10% of its Net Asset Value in debt securities offered by a single issuer if said securities are rated not below investment grade by a credit rating agency.
• The scheme is allowed to make investments over 10% of its Net Asset Value in unrated debt instruments of any particular company.
• The Mutual Fund, under all the schemes, cannot own over 10% of the paid-up capital voting rights of any company.

Dividend Policy of HDFC Equity Savings Fund

The trustee holds the right to declare dividends under the dividend option of the HDFC Equity Savings Fund. The declaration of dividends is based on whether or not distributable surplus is available. In case dividends are declared under the scheme, unitholders will receive the same on the record date.

Other Facilities Offered by HDFC Equity Savings Fund

The following are some of the key facilities offered by HDFC Equity Savings Fund:

• Flex SIP: Flex Systematic Investment Plan or FLEXSIP as it is also called, is a facility that allows investors to make investments at predetermined intervals of time in the Growth Option of hybrid schemes and open-ended equity schemes.
• Group Systematic Investment Plan (GSIP): This facility allows corporate employees to participate and subscribe to units of HDFC Equity Savings Fund. The corporate is only allowed to choose the GSIP date (the date on which the instalment amount will be debited). If no date is selected, the 10th will be chosen as the default date. Through this facility, investors have the choice to hold units of HDFC Equity Savings Fund in dematerialised form.
• One Time Mandate Facility: This facility is paperless, convenient, and simple. It allows unitholders to carry out transactions in the fund’s schemes through the submission of the One Time Mandate registration form to the Fund. The unitholders, under this facility, give authorisation to their bank accounts to debit their account up to a predetermined limit per day.
• Flex STP: HDFC Flex Systematic Transfer Plan, or Flex STP as it is also called, is a facility that allows unitholders who hold units in non-demat form to choose if they would like to transfer variable amounts linked to the value of the investments under this facility on the transfer date at pre-specified intervals of time, from designated open-ended schemes to the Growth Option of the designated open-ended scheme.
• HDFC Swing Systematic Transfer Plan: This facility allows unitholders who hold units in non-demat form to choose if they want to transfer a sum of money at regular intervals of time from a designated open-ended scheme to the Growth Option of the designated open-ended scheme. This facility allows transfers to take place at quarterly, monthly, and weekly intervals.

Why you should invest in HDFC Equity Savings Fund

HDFC Equity Savings Fund is a good investment option if you want capital appreciation along with income in the medium to long term. The scheme is also worth considering if you want income through investment in a fine mix of debt securities, equity and equity-related instruments, and arbitrage opportunities.

GST rate of 18% applicable for all financial services effective July 1, 2017.