HDFC Long Term Adv Fund(G)

Performance

HDFC Long Term Advantage Fund - Growth Option is an open-ended equity linked saving scheme that comes with a statutory lock-in of three years. It also offers tax benefits in addition to providing long-term capital appreciation.

Investment Objective of HDFC Long Term Advantage Fund - Growth Option

HDFC Long Term Advantage Fund - Growth Option aims to generate capital growth in the long term through investment in a portfolio that consists mainly of equity and equity-related securities.

Key Features of HDFC Long Term Advantage Fund - Growth Option

Here are some of the key features of HDFC Long Term Advantage Fund - Growth Option:

Investment Amount for HDFC Long Term Advantage Fund - Growth Option

Asset Allocation for HDFC Long Term Advantage Fund - Growth Option

Who can Invest in HDFC Long Term Advantage Fund - Growth Option?

The following entities can make investments in HDFC Long Term Advantage Fund - Growth Option:

• Resident Indian adults
• Hindu Undivided Families through their Kartas
• Natural guardians (mother or father) and lawful guardians for investments on behalf of minors
• Limited Liability Partnerships and partnership firms
• Corporate bodies, Body of Individuals (BOIs), companies, Association of Persons (AOPs), Public Sector Undertakings (PSUs), sole proprietorships, co-operative societies that have been registered under the Co-operative Societies Act, 1912, and societies that have been registered under the Societies Registration Act, 1860
• Financial institutions and banks
• Alternative Investment Funds and Mutual Funds that have been registered with the Securities and Exchange Board of India
• Charitable and Religious Trusts, and endowments or wakfs of private trusts
• Overseas Citizens of India (OCIs), Persons of Indian Origin (PIO), and Non-resident Indians (NRIs)
• Foreign Portfolio Investors (FPIs) and Foreign Institutional Investors (FIIs) registered with the Securities and Exchange Board of India
• Council of Scientific and Industrial Research, India
• Navy, air force, army and other paramilitary bodies and units
• Bilateral Development Corporation Agencies/Multilateral Financial Institutions/corporate bodies incorporated outside the country with the permission of the Reserve Bank of India or the Government of India
• Asset Management Company, trustee, sponsor and their associates
• Other schemes of HDFC Mutual Fund provided they meet the conditions set by the Securities and Exchange Board of India
• Any other category of investors as approved by the Asset Management Company or trustee from time to time

NAV Disclosure and Benchmark for HDFC Long Term Advantage Fund - Growth Option

The NAV of HDFC Long Term Advantage Fund - Growth Option must be computed and disclosed by the Asset Management Company along with the scheme’s sale and repurchase price at the end of each working day. The NAV must also be published in at least two daily newspapers, and the NAV, along with the sale and repurchase price, must be displayed on the website of HDFC Mutual Fund as well as the website of the Association of Mutual Funds in India.

The formula used to calculate the NAV of HDFC Long Term Advantage Fund - Growth Option is as follows:

(Fair Value or Market Value of the Scheme’s investment + Current Assets - Current Liabilities and Provisions) / Number of units outstanding under the scheme

Benchmark Index of HDFC Long Term Advantage Fund - Growth Option:

The benchmark adopted by HDFC Long Term Advantage Fund - Growth Option is S&P BSE Sensex.

HDFC Long Term Advantage Fund - Growth Option Fund Manager

HDFC Long Term Advantage Fund - Growth Option has been managed by Mr. Chirag Setalvad and Mr. Rakesh Vyas. Mr. Setalvad has been in charge of the scheme for over 11 years now, while Mr. Vyas has been managing the fund for around six years. The former has over 21 years of experience, collectively, and also manages other funds of HDFC Mutual Funds, like HDFC Small Cap Fund, HDFC Children’s Gift Fund, HDFC Retirement Savings Fund, etc. The latter has over 13 years of cumulative work experience and manages other funds for HDFC, such as HDFC Arbitrage Fund, HDFC Banking and PSU Debt Fund, HDFC Medium Term Opportunities Fund, etc.

Investment Restrictions of HDFC Long Term Advantage Fund - Growth Option

• The Mutual Fund can only make transactions associated with government securities in the demat form.
• No loans can be advanced by the scheme unless expressly provided under the regulations of the Securities and Exchange Board of India.
• The scheme is not allowed to park funds in any bank’s short-term deposit if the bank has made investments in the scheme.
• The scheme is not allowed to invest in unlisted securities of group or associate companies of the sponsors.
• The scheme is not allowed to make investments in fund of funds schemes.
• The scheme cannot invest in listed securities of the sponsor’s group companies that are more than 25% of the net assets.

Dividend Policy of HDFC Long Term Advantage Fund - Growth Option

The right to declare dividends under the dividend option of the scheme rests with the trustee of the scheme based on the availability of distributable surplus. In case dividends are declared, they shall be paid to the unitholders if their names appear in the Register of Unitholders on the record date.

Other Facilities Offered by HDFC Long Term Advantage Fund - Growth Option

Here are some of the other facilities offered by HDFC Long Term Advantage Fund - Growth Option:

• SIP Top Up Facility: This facility allows investors to increase their SIP instalment amount by a fixed sum at predetermined intervals. It essentially enables investors to be increasingly flexible and invest larger amounts over the course of the SIP tenure.
• Micro Systematic Investment Plan (Micro SIP): Investors who invest in mutual fund schemes can get an exemption up to Rs.50,000 per annum from the PAN requirement. These PAN exempt SIPs are called Micro SIPs.
• Flex Systematic Investment Plan (Flex SIP): This facility enables investors to make investments at pre-specified intervals in the Growth Option of the scheme.
• Group Systematic Investment Plan (GSIP): This facility allows employees of corporates to subscribe to units of the scheme. Investment through this facility can be made in Monthly Systematic Investment Plan.
• Dividend Transfer Plan Facility: Under this facility, unitholders of HDFC Mutual Fund’s source schemes can automatically invest the dividend declared by said scheme into target schemes. This facility is open to investors who hold units of the scheme in non-demat form under the dividend option of the scheme.
• Automatic Trigger Facility: This facility allows unitholders who hold units in non-demat form to choose the switch and/or withdrawal option depending upon the unit balance achieving a certain level of gains or capital appreciation, or on certain dates, or on the happening of certain events, etc.

Why You Should Invest in HDFC Long Term Advantage Fund - Growth Option

HDC Long Term Advantage Fund - Growth Option can be a good investment for those who want capital growth over the long term through investment mainly in equity and equity-related securities. It is also a good fit for those who want tax benefits under Section 80C of the Income Tax Act, 1961.

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