HDFC Prudence Fund(G) - Direct Plan

Performance

HDFC Mutual Fund was constituted on 8 June 2000 with HDFC and Standard Life Investments Ltd. as the sponsors. While the trustee of the mutual fund is HDFC Trustee Co. Ltd., the asset management company is HDFC Asset Management Co. Ltd. The AMC was established on 10 December 1999 and has its registered office in Mumbai.

The company offers a wide variety of mutual funds such as equity funds, liquid funds, debt funds, exchange-traded funds, etc. The HDFC Balanced Advantage Fund – Direct – Growth scheme, which was formerly known as HDFC Prudence Fund is basically a growth fund. The growth option ensures that the money invested grows and provides lump-sum returns over a long period of time. Since the plan type chosen is the direct type of plan, the investor can make investments himself/herself without involving brokers and intermediaries.

Investment Objective of HDFC Balanced Advantage Fund - Direct - Growth

The objective of the scheme is to achieve capital appreciation on a long-term basis by making investments in both equity as well as debt fund types.

Key Features of HDFC Balanced Advantage Fund - Direct - Growth

Here are some of the significant features of the scheme:

Investment Amount for HDFC Balanced Advantage Fund - Direct - Growth

The investment amount details of the scheme are as mentioned below:

Asset Allocation for HDFC Balanced Advantage Fund - Direct - Growth

The investment ranges for the below-mentioned instruments under normal market conditions will be as follows:

Who can Invest in HDFC Balanced Advantage Fund - Direct - Growth

The following entities can subscribe to the HDFC Balanced Advantage Fund - Direct Plan - Growth Option scheme:

• Adults residing in India - singly or jointly (not more than 3 persons for joint holding)
• Natural guardian or legal guardian on behalf of a minor
• Hindu Undivided Family
• Public Sector Undertakings (PSUs), domestic corporate bodies, companies, partnership firms, sole proprietorship companies, and limited liability partnerships
• Trusts permitted to invest in mutual funds such as religious and charitable trusts
• Financial institutions, multilateral financial institutions, bodies corporate set up outside India, bilateral development corporation agencies, banks, and the Reserve Bank of India
• Non-resident Indian, Overseas Citizen of India, Foreign Portfolio Investors, and Foreign Institutional Investors
• Army, Air Force, Navy, Para-military funds
• Council of Scientific and Industrial Research
• Other schemes under HDFC Mutual Fund, trustees, sponsors, and AMCs
• Other investors as decided by the trustees and AMC

NAV Disclosure and Benchmark for HDFC Balanced Advantage Fund - Direct - Growth

NAV: The NAV of the scheme is calculated by dividing the net assets by the number of outstanding units at the end of a working day. The market value of the investments of the scheme is added to the existing assets and then the liabilities and provisions are deducted from the sum. The figure is then divided by the number of units outstanding on the day of valuation. The NAV of a scheme is published in a minimum of two daily newspapers and the official website of the AMC and the Association of Mutual Funds in India (AMFI).

Liquidity: Since the scheme is open-ended, investors can sell, redeem, switch in and switch out units of any scheme on any business day at NAV based prices. The mutual fund will dispatch the proceeds of redemption within 10 days from the day of redemption. If it is not dispatched within 10 days, according to SEBI’s regulations, a penal interest of 15% p.a. will be levied on the mutual fund.

Benchmark Index: The benchmark index chosen for this scheme is NIFTY 50 Hybrid Composite Debt 65:35 Index.

Fund Manager of HDFC Balanced Advantage Fund - Direct - Growth

The fund manager of the scheme is Prashant Jain, who has 27 years of experience in the mutual fund industry with the focus on fund management and research. He has been managing the HDFC Balanced Advantage Fund - Direct - Growth scheme for 14 years and 10 months. Apart from this scheme, Jain also manages three other funds.

Investment Restrictions of HDFC Balanced Advantage Fund - Direct - Growth

The restrictions that are applicable to the HDFC Balanced Advantage Fund - Direct Plan - Growth Option scheme are:

• The mutual fund buys and sells securities based on deliveries.
• In case of purchase or transfer of long-term securities, the mutual fund will carry out such transactions in the name of the mutual fund itself on account of the concerned scheme.
• With all schemes put together, the mutual fund cannot own more than 10% of a company’s voting rights.
• The scheme can make short-term deposits that last for not more than 91 days. The limit for investments of the net assets are as follows:

o10% in a single scheduled commercial bank

o15% in all scheduled commercial banks together

o20% in all sponsor and associate scheduled commercial banks put together

• The scheme cannot make investments in listed securities issued by group companies that are more than 25% of the net assets, securities of associate or group companies that are issued by private placement, unlisted securities issued by associate or group companies, and fund of funds schemes.
• The limit for equity and equity-related instruments that can be invested in under a scheme is 10% of NAV.
• The limit for unlisted equity and equity-related instruments that can be invested in under a scheme is 5% of NAV.

Dividend Policy of HDFC Balanced Advantage Fund - Direct - Growth

The trustee has the right to declare dividends for the unitholders of the scheme. The dividend is paid from the scheme’s corpus and hence reduces the net assets once the dividends are distributed. The AMC does not guarantee the dividend amount that will be paid to the unitholders or the frequency at which the dividends will be paid. Also, the AMC does not provide assurance that dividends will be paid regularly. The rate of the dividend depends on the distributable surplus available with the mutual fund. Dividends, once declared, will be provided to the unitholders whose names are present in the register of unitholders.

Dividend distribution

The trustees will decide the rate of dividend in the meeting and within one day from the meeting, the rate of dividend is revealed to the public. The details of the dividend distribution including the rate and record date are published in one popular English newspaper as well as the regional newspaper of the region where the location of the AMC is.

Other facilities under HDFC Balanced Advantage Fund - Direct - Growth

HDFC Mutual Fund offers a few other facilities. The details of the same are given below:

• SIP Top-up feature: Investors can choose to increase the SIP installment amount by opting for the SIP top-up feature. This options aids individuals to invest higher amounts at regular intervals so that they can reap maximum benefits. The top-up is required to be in multiples of Rs.100. This feature is available for the monthly and quarterly frequency SIPs.
• One time mandate: The company has designed a simple one-time mandate form that allows individuals to carry out paperless transactions, making the transaction procedure convenient for the unitholders. This facility authorises the bank to debit amounts up to a certain limit when a request is made by the AMC after the unitholder has initiated the process. This avoids the need to submit a cheque or transfer funds to the scheme.
• Switch schemes/plans: Unitholders can switch from one plan to another or one scheme to another if the units of the scheme are in non-demat form. The units will first be redeemed from the original plan or scheme and then reinvested in the desired scheme. Exit load will be applicable at redemption.
• Trigger facility: The trigger facility allows individuals to withdraw units when the balance of the scheme reaches a certain value. It can also be withdrawn after a specific period of time.

Why you should invest in HDFC Balanced Advantage Fund - Direct - Growth

HDFC AMC provides hassle-free services and allows investors to apply and make transactions through the official website of the AMC. Financial experts will assist investors right from the start to help them understand the procedures and aid them to make better investments. The company offers customised funds such as children’s gift fund, retirement savings fund, cancer care fund, etc. This sets the company aside as it provides special funds for specific requirements.

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