HDFC Infrastructure Fund
The HDFC Infrastructure Fund is a thematic mutual fund oriented towards investments in companies related to the infrastructure industry, or those who have an indirect stake in the industry. It is offered by HDFC Asset Management Company, among the largest AMCs in the country.
Type of fund
This is an open ended sector-specific equity scheme.
Investment objective
The objective here is to offer long term capital appreciation through investments primarily in equity and related instruments of firms that are engaged in or are stakeholders in the returns from growth in infrastructure sector in the country.
Fund information
Inception date | 10/03/2008 |
CRISIL rank | Rank 4 in Infrastructure sector equities |
Schemes | Direct Plan – Growth OptionDirect Plan – Dividend OptionGrowth OptionDividend Option |
Entry load | 0%. Any upfront commissions to be paid by investor directly to ARN holder. |
Exit load | 1% if redeemed within 1 year |
Minimum investment | Rs.5,000 for new investors and any amount thereafterRs1,000 for existing investors and any amount thereafter |
SIP | Minimum Rs.500 for monthly subscriptionMin. Rs.1,500 for quarterly subscription |
Product label – Risk and target investors | High risk. Meant for long term investors looking at capital appreciation through equity-related investments |
Benchmark | CNX 500. This index represents almost 96% of all free float market capitalization of equities listed on the National Stock Exchange (NSE). The trading value of constituents of CNX 500 index is close to 92% of overall traded value 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 processed within 10 days |
Taxation (on investment and on redemption) | As per applicable sections under the Income Tax Act. |
Fund manager(s)
Mr Prashant Jain, Executive Director and Chief Investment Officer, manages the fund and comes with over 20 years of experience in the mutual fund industry. He manages several other funds from HDFC Mutual Funds including HDFC Monthly Income Long Term Plan, HDFC top 200 Fund and HDFC Prudence Growth etc. He is a celebrated fund manager overseeing some of the best products from HDFC AMC. His educational qualifications are CFA – AIMR, USA; PGDM – IIM Bangalore; B. Tech – IIT Kanpur. He has previously worked with Zurich AMC and SBI Mutual Fund.
Mr Srinivas Rao Ravuri is a Senior Fund Manager and has over 18 years of industry experience primarily in fund management and equity research for Indian financial markets. . He manages various funds from HDFC Mutual Funds such as HDFC Focussed Equity Fund and HDFC Rajiv Gandhi Equity Savings Scheme, among others. He has a bachelor’s degree in B.Com and an MBA. He has previously worked with Motilal Oswal Securities Ltd, Edelweiss Capital Ltd and Securities Capital Investments Ltd.
Investment philosophy
The fund is aimed at providing long term capital appreciation through investments in equities of infrastructure-oriented companies. 65-100% of the portfolio consist of such investments at any given time. Interest rate risks are mitigated by exploiting emerging opportunities in the investment scenario.
Portfolio – Sector / Top 10 Holdings*
Name | Sector | Class | Allocation (%) |
State Bank of India | Financial | Equity | 8.04 |
Larsen & Toubro Ltd | Diversified | Equity | 6.92 |
Bank of Baroda | Financial | Equity | 5.95 |
ICICI Bank Ltd | Financial | Equity | 5.65 |
Sadbhav Engineering Ltd | Construction | Equity | 3.78 |
Infosys Ltd | Tech | Equity | 3.66 |
Siemens Ltd | Engineering | Equity | 3.64 |
Tata Motors DVR | Auto | Equity | 3.44 |
ITD Cementation India Ltd | Construction | Equity | 3.03 |
Sanghvi Motors Ltd | Construction | Equity | 2.88 |
*As on 31st July 2015
Risk measures
Standard Deviation | 27.91% |
Sharpe Ratio | 0.52 |
Alpha | 0.83% |
Beta | 1.66 |
Performance*
AUM | Rs.1,928.39 crores (Growth) |
NAV | Direct Plan – Dividend Option: Rs.15.1160Direct Plan – Growth option: Rs.15.1160Dividend Option: Rs.13.5300Growth Option: Rs.14.7940 |
Expense Ratio | 2.50% on first Rs.100 crores daily net assets2.25% on next Rs.300 crores2.00% on next Rs.300 crores1.75% on remaining daily net assets |
* As on 31st July 2015
Benchmark comparison*
Compounded Annualised Returns | Scheme Returns (%) | Benchmark Returns (%) |
Returns for last 1 year | 6.31 | 7.26 |
Returns for last 3 years | 8.35 | 6.54 |
Returns for last 5 years | NA | NA |
Returns since inception | 5.85 | 5.50 |
*As on 31st March 2011
Expert view of the fund
The HDFC Infrastructure Fund is a good bet if you are looking for a thematic fund that gains from the rise of the infrastructure sector. The fund has given healthy returns over its 7 years of existence and is managed by the celebrated Prashant Jain. Long term investors can rely on the fund for capital appreciation as the sector is likely to go up in the long run and short term volatility is possible. You should always consult with your personal financial advisor before investing in any risky instruments such as mutual funds.
How to apply
Investors and use both online and offline routes to invest in HDFC Prudence Fund.
- OnlineOnline investors can directly log in to the official website and register with HDFCMFOnline portal. On completing the KYC norms they will be given a HPIN number which can be used for further processes. Payments can be made through multiple avenues. Alternatively, investors can also approach third party online vendors who have lists of products.
- OfflineFor offline investors, there are many branches catering to HDFC mutual funds. You can directly approach a registered branch and submit the KYC norms. You will then have to fill up the required documents and submit information as they ask. Alternatively, you can approach third-party distributors and dealers who can help you out with the registration and investment process, after careful consideration.
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