HDFC or the Housing Development Finance Corporation Limited is one of India’s premier financial conglomerates. It was established in 1977 as a mortgage company and has since grown into a financial giant that has, as its major subsidiaries, companies likes HDFC Bank, HDFC Standard Life Insurance Company Limited and even HDFC Asset Management Company among others. The services provided by the company range from mortgages to insurance to mutual funds.
HDFC Mutual Funds
Mutual funds are the products offered by the asset management company HDFC Mutual Funds. It was established as a trust under HDFC along with Standard Life Investments Limited as the sponsor. The trustee of the company is HDFC Trustee Company Limited. The company launched its first products in 2000 and has grown considerably since them to offer mutual funds spread across 11 different types of funds.
In a recent move, HDFC Mutual Funds, which is India’s largest mutual funds manager, bought out Morgan Stanley’s business when they exited the country. The eight schemes of Morgan Stanley that were bought by HDFC had a combined value of Rs 3,290 crore. This move has put HDFC Mutual funds even further ahead of its competitors in the mutual funds markets.
Types of HDFC Mutual Funds
HDFC Mutual Funds offer a wide variety of mutual funds for investors to choose from. They range from the regular equity and debt funds to funds of funds schemes, liquid funds, etc.
- Equity / Growth Fund
HDFC growth funds are designed to invest mostly in the equity markets. The management of these funds can be active or passive (index funds). The various fund options offered under this scheme are meant to meet the long or short term investment needs of the customers.
- Debt/ Income Fund
The debt funds, or income funds, by HDFC Mutual Funds is a scheme that invests in things like short / long term bonds, money markets, floating rate debts, etc. The purpose of these investments is to generate an income for the investor and that is exactly what the plans offered by HDFCMF do.
- Liquid Funds
Liquid funds are investments made in securities and come with maturity periods of 91 days. This makes them a low risk investment option. They even tend to be better for liquidity and come without exit loads.
- Children's Gift Fund
The Children’s Gift Fund offered by HDFCMF is a scheme that has been designed to provide a chance for the investor’s capital to grow over a long term. This means that the funds can be used to prepare for the needs of children as they grow older.
- Exchange Traded Funds
HDFC Mutual Funds’ Exchange Traded Funds or ETFs are funds that are traded on the stock markets. They offer higher liquidity options and come with lower fees when compared to mutual funds. The money is invested in gold and tends to be a high risk investments.
- Quarterly Interval Fund
These are mutual funds where investments are made in both open-ended and close-ended schemes. They can be sold or redeemed at predefined intervals. It invests in government securities and even in the debt markets.
- Annual Interval Fund - Series 1
These mutual funds offered by HDFCMF are similar to the Quarterly Interval Funds and invest in money markets and government securities. They also come with predefined periods for selling or redeeming and are low risk investment.
- Rajiv Gandhi Equity Savings Scheme
The Rajiv Gandhi Equity Savings Scheme (RGESS) is an equity investment scheme that offers investors tax benefits. It is meant to encourage small investors into investing in the capital markets.
- Fixed Maturity Plan
The Fixed Maturity Plan offered by the company are mutual funds that invest in government securities and debt markets. They offer low risks to investors and can be close-ended schemes.
- Fund of Fund Schemes
This scheme uses mutual funds to invest in other mutual funds. These schemes offered by HDFC Mutual Funds tend to be open-ended schemes and come with high risks, which also means that they can give high returns.
- HDFC Capital Protection Oriented Schemes
This is a scheme that aims at generating an income by investing in the debt markets. The instruments that they invest in come with fixed maturity dates and offer investors a low risk investment environment.
Why choose HDFC Mutual Funds?
HDFC Mutual Funds has a lot of offer to potential investors. The company boasts of offering investor a chance to invest profitably. This is made obvious by the following observations about the company.
- Many of the products offered by the company come with CRISIL ratings of 3 and above.
- The company offers investors a huge variety of funds to invest in.
- Investors can also draw advantages on taxes by investing with HDFCMF
- The funds on offers range from long term to short term funds. They even offer close and open-ended funds to choose from.
- The company has something to suite every investor’s appetite for risk. They offer low, medium and high risk products.
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News about HDFC Mutual Fund
Fixed Maturity Plan introduced by HDFC Mutual Fund
This September HDFC Mutual Fund have introduced a new Fixed Maturity Plan a close ended scheme with a minimum subscription of Rs. 5000. The new fund offer is available from 24th September 2015 and closes on 4th October 2015, the scheme will have no entry or exit loads applicable. The scheme performance plan will have a maturity of up to 91 days and is benchmarked with Crisil Liquid Fund Index The objective of this scheme is to increase investment with income through government securities and debt or money market instrument on or before maturity.
25th September 2015
HDFC Mutual Fund set to launch Resurgent India Fund
One of the most prominent fund houses of the country, HDFC Mutual Fund has filed an offer document with SEBI for the launch of a new open-ended equity scheme called Resurgent India Fund. The scheme is meant as a pure equity scheme with a high risk-return ratio. The fund will offer units at a price of Rs.10 per unit and the entry load to avail the scheme is nil. The exit load for customers has been kept at 1% if the units are surrendered or redeemed within one year of availing the fund scheme.
HDFC Resurgent India Fund will offer growth and dividend options and has a minimum target amount of Rs.10 crores. The benchmark of the scheme will be CNX 500 Index and the minimum amount that can be invested in Rs.5000. Since, it is an equity related scheme, the aim of the fund is to generate long-term capital growth by investing in equity and equity related companies of around 25 companies.
22nd September 2015
New income scheme from HDFC MF; NFO Sept.15 - 22, 2015
HDFC Mutual Fund rolls out its new income scheme (close-ended). The NFO for the scheme ‘FMP 1108D September 2015 (1)’ is valid from September 15th to September 22nd 2015 for a minimum initial investment of Rs.5,000 without any entry load. Similarly, there will be no exit load under this scheme. Investments will be made in debt instruments with a view of earning fixed returns. It is a regular income-oriented scheme. The investments will be of durations equal to or lesser than the tenure of the scheme plans. The scheme duration is of 1108 days. The performance benchmarks of this scheme are the Crisil Liquid Index Fund, Crisil Short Term Bond Fund Index, Crisil Composite Bond Fund Index depending on the duration of the plans which falls under three terms viz. upto 91 days, between 91 days and 36 months and above 26 months.
21st September 2015
HDFC Balanced Fund has consistent track record
Despite the low risk profile, HDFC Balanced Fund’s 5 year return beats the returns of pure equity funds. The equity funds returns were at 9.5 percent, whereas the HDFC Balanced Fund’s returns were 14 percent. The fund was moved in and out of sectors in time. The fund moved from the IT sector to trim its allocation and shifted to banking space. The next sectors opted were defensive sectors software and pharmaceuticals. In one year, the fund reduced its exposure to corporate debt and increased allocations in government securities. The fund is aggressive ones on mid-cap allocations half of their investments are in mid and small cap stocks.
16th September 2015
Quarterly frequency to be fixed for dividend payment of HDFC Balanced Fund
HDFC Balanced Fund will soon have a quarterly pay-out frequency for dividend payout under the dividends option for fund. This will be applicable to Dividend options of the direct and regular plans of the HDFC Balanced Fund. The record date for this will be 25th day of the third month of each quarter ending in March, June, September and December, or the immediately following business day in case the 25th day is a holiday.
HDFC Balanced Fund is an open-ended Balanced scheme that aims to invest an investers money in both debt and equity investments.The idea behind the fund is to balance risk as well as growth by investing in both the stock market and debt instruments. While equity investment adds growth to the portfolio, the debt instrument part lends stability to the fund. HDFC Balanced Fund has been a popular fund in the subsequent category and is a favorite among customers in terms of returns that it offers.
14th September 2015
GST rate of 18% applicable for all financial services effective July 1, 2017.