HDFC Regular Savings Fund (G)

Performance

HDFC Mutual Fund is headquartered in Mumbai and is managed by HDFC Asset Management Company Ltd. The fund house was established as a Trust in the year 2000 and is sponsored by Housing Development Finance Corporation Ltd. (HDFC) and Standard Life Investments Ltd. The mutual fund house offers many schemes across various asset classes of debt, equity, liquid, exchange traded funds (ETFs), Fund of Funds (FoFs), etc.

The HDFC Regular Savings Fund - Growth scheme is an open-ended income scheme that invests in money market and debt securities. The scheme comes in both growth and dividend option. The growth option of the scheme keeps the capital invested till the end of the term after which returns will be paid out to the investor.

Investment Objective:

To produce regular income for the investor through investment in debt and money market securities.

Key Features:

Investment amount for HDFC Regular Savings Fund:

Asset Allocation for HDFC Regular Savings Fund:

Who can invest in HDFC Regular Savings Fund:

The following persons/entities are eligible to apply for subscription to the units of HDFC Regular Savings Fund:

• Adult individuals residing in India
• Hindu Undivided Family through Karta
• Minors through a legal guardian or parent
• Association of Persons or Body of Individuals
• Persons of Indian Origin (PIO)/Non-Resident Indians (NRIs) on repatriation or non-repatriation basis
• SEBI registered Foreign Portfolio Investor
• Limited Liability Partnerships and Partnership firms
• Universities and educational institutions
• Religious and Charitable Trusts, Wakfs or endowments of private trusts
• Corporate bodies and companies registered in India
• Army, Navy, Air Force, and other paramilitary funds
• Proprietorship in the name of the sole proprietor
• Financial institutions and banks (including Regional Rural Banks and Co-operative Banks)
• Scientific and Industrial Research Organisations
• Pensions/Gratuity/Provident Fund to a permissible extent
• AMC/Trustee or Sponsor or their associates
• International Multilateral Agencies approved by the RBI and Government of India
• Mutual fund schemes registered with SEBI (Securities and Exchange Board of India)

NAV Disclosure and Benchmark for HDFC Regular Savings Fund:

The Net Asset Value (NAV) per unit of a scheme is calculated by dividing the scheme’s net assets by the number of outstanding units under the scheme on the date of valuation. The NAVs will be computed up to 3 decimals.

The NAV of the mutual fund will be updated by the fund house on its website - www.hdfcfund.com and also on the website of AMFI at www.amfiindia.com on every working day by 9:00 p.m. The NAVs will also be sent for publication to at least 2 newspapers with nationwide circulation.

Liquidity: Since the scheme is open-ended, units can be purchased or sold at applicable NAVs on every business day.

Benchmark: CRISIL Short Term Bond Fund Index

Fund Manager:

Mr. Rakesh Vyas

The HDFC Regular Savings Fund is managed by Mr. Rakesh Vyas who has been managing the scheme since 4 years and 10 months. Overall, he has over 13 years of experience out of which 10 years were into equity research. The other funds managed by him are HDFC Growth Fund, HDFC Equity Fund, HDFC Capital Builder Fund, HDFC Children’s Gift Fund, HDFC Infrastructure Fund, HDFC Liquid Fund, HDFC Prudence Fund, etc.

Investment Restrictions on HDFC Regular Savings Fund:

The Securities and Exchange Board of India (SEBI) has laid down the below investment restrictions for subscription to the HDFC Regular Savings Fund:

• The scheme is not allowed to invest above 25% of its net assets in debt securities that have been issued by issuers of one sector. This regulation will not be applicable to investments in government securities, treasury bills, and CBLO (Collateralised Borrowing and Lending Obligation).
• The scheme is not permitted to invest over 20% of its net assets in a group. The group excludes investments in Public Sector Banks (PSBs), Public Sector Units (PSUs) and Public Financial Institutions (PFIs).
• The scheme cannot invest over 10% of its NAV in debt, money and non-money market securities that have been issued by a single issuer. Such securities should be rated above the investment grade by a credit rating agency.
• The scheme is not permitted to park funds in short-term bank deposits of a bank that has made investments in the scheme.
• The scheme can make transactions dealing with government securities only in dematerialised form.
• The scheme is not permitted to make investments in any security of group or associate company of the sponsors that are unlisted. It is also not allowed to invest in any Fund of Funds (FoF) scheme.
• The scheme cannot invest in listed securities of the sponsors’ group companies over 25% of its net assets.
• The mutual fund is allowed to purchase and sell securities based on deliveries provided the securities are delivered in all cases.
• All of the above-mentioned investment restrictions will apply only when the investment is made.

Dividend Policy of HDFC Regular Savings Fund:

Dividends will be declared and distributed by the Trustee depending on the availability of distributable surplus. The dividends will only be paid out to unitholders who have opted for this option and whose names appear on the register of the unitholders. The dividend payments will be made through a cheque or can be transferred directly into the bank account of the unitholder. The scheme also comes with a dividend reinvestment facility where the dividend declared will be reinvested back into the scheme.

The dividend option will reduce the NAV of the unitholders by the declared dividend amount.

Other Facilities offered by the HDFC Regular Savings Fund:

The HDFC TaxSaver Plan offers the below facilities to investors:

• Systematic Investment Plan (SIP)
• Systematic Withdrawal Plan (SWP)
• Systematic Transfer Plan (STP)
• HDFC Swing Systematic Transfer Plan
• Dividend Transfer Plan Facility
• Systematic Withdrawal Advantage Plan (SWAP)
• HDFC Flexindex Plan
• One Time Mandate (OTM) Facility
• Switching Option
• Facility to buy or sell units through the stock exchange

Why you should invest in HDFC Regular Savings Fund:

• Special benefits - The scheme offers many facilities to its investors such as HDFC Swing Systematic Transfer plan, HDFC Flexindex Plan, etc. The HDFC Flexindex Plan, for example, allows investors holding units in non-demat form to automatically transfer a predetermined percentage to select equity schemes subject to Terms and Conditions.
• Professional management - The fund managers of the HDFC Regular Savings Plan have over 13 years of experience in managing investments so you can rest assured that your investment will fetch most favourable returns.
• Offers various investment options - The HDFC Regular Savings Fund offers both regular and direct plans. The direct plan offers a lower expense ratio and therefore, is ideal for investors who do not wish to shell out any additional costs on the investment.
• Low risk - Since the scheme invests in debt and money market securities, it offers low risk to the investor. The scheme is also capable of fetching optimal returns for the investor by investing in the mentioned securities.

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