The HDFC Inflation Indexed Bond Fund is aimed at generating income as well as capital appreciation that is indexed to inflation. The fund is offered by HDFC Mutual Funds, among the largest mutual fund houses in the country.
This is an open ended income mutual fund.
The objective here is to generate income and capital appreciation that is indexed to inflation by making investments in a portfolio consisting of inflation indexed bonds.
Inception date | 04/03/2013 |
CRISIL rank | Not ranked |
Schemes |
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Entry load | 0%. Any upfront commissions to be paid by investor directly to ARN holder. |
Exit load | 1.50% if redeemed within 1 year |
Minimum investment |
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SIP |
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Product label - Risk and target investors | Moderate risk. Meant for investors who wish to hedge against inflation and generate income through investments in inflation indexed securities issued by govt. and corporates. |
Benchmark | I-SEC Composite Gilt Index. |
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. Minimum redemption amount of Rs.1,000 or 100 units. |
Taxation (on investment and on redemption) | As per applicable sections under the Income Tax Act. |
Mr Anil Bamboli is a CFA qualified professional from AIMR, USA. He has a Master's degree in Management Studies in Finance and graduation in Cost and Works Accountant from ICWAI. He was previously employed by SBI Fund management. He manages other funds from HDFC AMC such as HDFC Short term Direct Plan, HDFC Multiple Yield Fund Plan, HDFC Cash Mgmt. Savings and HDFC Gilt Short Term Plan, among others.
The fund will invest primarily in inflation linked bonds or IIBs while pursuing a balance between returns and liquidity. The fund aims to use investment strategies such as relative curve positioning, duration management, spread and similar tactics. 70-100% of the portfolio will include investments in money market instruments and/or money market schemes/units of liquid of HDFC Mutual Fund. 0-30% of portfolio may consist of other debt and money market instruments.
Standard Deviation | 3.84% |
Sharpe Ratio | -0.43 |
Alpha | NA |
Beta | NA |
AUM | Rs.1 crore (Regular Growth) |
NAV |
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Expense Ratio |
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*As on 31st July 2015
Compounded Annualised Returns |
| Scheme Returns (%) |
| Benchmark Returns (%) | ||||||||
Scheme Returns (%) | ||||||||||||
Benchmark Returns (%) | ||||||||||||
Growth Option | Direct Plan - Growth Option | Growth Option | Direct Plan - Growth Option | |||||||||
Returns for last 1 year | 3.18 | 3.53 | 14.81 | 14.81 | ||||||||
Returns since inception | 3.64 | 4.22 | 9.17 | 9.17 |
*As on 30th April 2015
Inflation indexed bonds are fairly new entrants in the Indian mutual fund investments market. These schemes help provide hedge against inflation. The bonds offer capital appreciation if the interest rates continue rising, Right now the sentiment of the apex bank is toward cutting interest rates, so short term profits aren't likely. However, in the long run if interest rates go up, the returns will be higher than tax free bonds at little to no risk. Mutual fund investments are subject to market risk and you should consult with your personal financial advisor before making any investments in these instruments.
Investors can go for either online application or offline application routes for applying to HDFC Inflation Indexed Bond Fund.
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