HDFC Index Fund
The HDFC Index Fund is an index linked fund that aims to offer returns proportionate to the performance of index such as Sensex and Nifty in separate plans. The fund was incepted in July 2002 and comes from the HDFC mutual fund house, among the biggest fund houses in the country.
Type of fund
This is an open ended index linked mutual fund.
Investment objective
The objective here is to generate returns proportionate to the performance of Sensex or Nifty according to the scheme selected, subject to tracking errors.
Fund information
Inception date | 17/07/2002 |
CRISIL rank | Rank 3 in Index Category |
Schemes | •Direct Plan - Growth Option •Nifty Plan - Growth •Sensex Plan - Growth |
Entry load | 0%. Any upfront commissions to be paid by investor directly to ARN holder. |
Exit load | 1% if redeemed within 3 months |
Minimum investment | •Rs.5,000 for new investors and any amount thereafter •Rs1,000 for existing investors and any amount thereafter |
SIP | •Minimum Rs.500 for monthly subscription •Min. Rs.1,500 for quarterly subscription |
Product label - Risk and target investors | Moderately High risk. Meant for investors seeking returns proportionate to performance of selected index as well as equity investments falling under one of the two Indices - Nifty and Sensex. |
Benchmark | S&P BSE Sensex (Only for Sensex Plan). This index was compiled in 1986 and is one of the most popular Indian equity market performance index. It is also among the most visible brands in equity markets in India. CNX Nifty (Only for Nifty Plan). It is a well-diversified stock index of 50 stocks across 22 sectors. The index represents more than 65% of the free float market capitalization of stocks listed on the NSE. |
SWP | Yes. Available in Fixed and Variable variants. Frequency of withdrawals are monthly, quarterly half yearly and yearly for Fixed SWP and quarterly, half yearly and yearly for Variable SWP. |
STP | Yes. Available in two variants namely Fixed Systematic Transfer Plan (FSTP) and Capital Appreciation Systematic Transfer Plan (CASTP). Daily, Weekly, Monthly and quarterly transfer plans are available. |
Redemption | Proceeds to be dispatched within 3-4 days |
Taxation (on investment and on redemption) | As per applicable sections under the Income Tax Act. |
Fund manager(s)
Mr Vinay R Kulkarni has over 22 years of collective experience of which 20 years have been in the fund management and equity research sector and 2 years in the IT sector. He has a B.Tech from IIT Mumbai and PGDM from IIT Bangalore. He has previously worked with Tata AMC, UTI Mutual Fund, Deutsche Mutual Fund and Patni Computer Systems Ltd. He manages several other funds from HDFC AMC including HDFC Multiple Yield Plan, HDFC Taxsaver, HDFC Dual Advantage Fund, HDFC Premier Multi Cap Fund and HDFC Large Cap Fund, among others.
Investment philosophy
The fund aims to provide returns that are proportional to the growth of indices including Sensex and Nifty. The plans are to be managed passively and invested in, according to the weightage of particular stocks in the respective indices. The philosophy is aimed at reducing tracking error by regular rebalancing of portfolio as per the change in weightage of stocks and incremental redemptions/collections from the plans.
Portfolio - Sector / Top 10 holdings* (Sensex Plan)
Name | Sector | Class | Allocation (%) |
HDFC Bank Ltd | Financial | Equity | 8.59 |
HDFC Ltd | Financial | Equity | 8.34 |
Infosys Ltd | Tech | Equity | 8.30 |
ITC Ltd | FMCG | Equity | 7.24 |
ICICI Bank Ltd | Financial | Equity | 6.97 |
Reliance Industries Ltd | Energy | Equity | 6.55 |
Larsen & Toubro Ltd | Diversified | Equity | 5.76 |
TCS Ltd | Tech | Equity | 5.12 |
Axis bank Ltd | Financial | Equity | 3.83 |
Sun Pharmaceuticals India Ltd | Healthcare | Equity | 3.52 |
*As on 31st July 2015
Risk measures
Standard Deviation | 13.25% |
Sharpe Ratio | 0.65 |
Alpha | 1.17% |
Beta | 0.91 |
Performance*
AUM | Rs.87 crores (Sensex Plan) |
NAV | •Direct Plan - Growth Option (Nifty): Rs.67.9956 •Direct Plan - Growth Option (Sensex): Rs.217.6226 •Nifty Plan (Growth): Rs.67.6653 •Sensex Plan (Growth): Rs.216.1602 |
Expense Ratio | •0.30% •Direct plans have a lower expense ratio by 0.15% |
*As on 4th September 2015
Benchmark comparison*
Compounded Annualised Returns |
| Scheme Returns (%) |
| Benchmark Returns (%) | ||||||||
Scheme Returns (%) | ||||||||||||
Benchmark Returns (%) | ||||||||||||
| Sensex Plan | Nifty Plan | Sensex Plan | Nifty Plan | ||||||||
Returns for last 1 year | 14.63 | 10.46 | 12.14 | 12.36 | ||||||||
Returns for last 3 years | 12.06 | 5.98 | 8.78 | 8.34 | ||||||||
Returns for last 5 years | 14.06 | 8.47 | 13.29 | 12.70 | ||||||||
Returns since inception | 25.67 | 19.98 | 25.52 | 23.79 | ||||||||
*As on 31st March 2011
Expert view of the fund
The HDFC Index Fund (Sensex) has shown above average returns compared to benchmarks till March 2011. The fund is good for investors looking to get returns similar to the performance of Sensex Index. The fund is passively managed and has beaten index returns over its existence of more than 12 years.
The HDFC Index Fund (Nifty) has lagged behind the Nifty index returns similar to many other Nifty indexed funds. The plan has no exit load after 30 days and so investors can switch to different funds with ease. The fund is passively managed and reflects weightage of stocks as per the index weightage.
How to apply
Investors can choose to apply for HDFC Index Fund investments through online portal or at registered branches of HDFC.
- OnlineInvestors can access the HDFCMFOnline portal to register their accounts with the fund house. Next they will need to submit to KYC norms as well as generation of HPIN number. The application form and supporting documents can be submitted and processing will be quick. Alternatively, investors can also use third party online services once they have established the credentials of the service provider.
- OfflineInvestors can directly approach a brick and mortar installation of HDFC MF or registered branches of HDFC MF to collect the application form, fill it up, and submit it along with supporting documents. All fund houses require you to fulfil KYC norms first. Alternatively, you can also approach third party distributors or dealers after thoroughly researching their credentials.
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