Overview of HDFC Mutual Fund

HDFC Mutual Fund is a constituted pool of fund that collects the money from several investors to invest in equity or debt markets. When we talk about HDFC Mutual funds, we should first understand how it has been set up? HDFC Mutual Fund has been established as a trust as per the provisions of the Indian Trusts Act, 1882, in accordance with the terms of the trust deed dated June 8, 2000 with Housing Development Finance Corporation Limited(HDFC) and Standard Life Investments Limited as the Sponsors/Settlors and HDFC Trustee Company Limited, as the Trustee. The registration of the Trust Deed has been done under the Indian Registration Act,1908. SEBI registers the mutual fund under the registration code MF/044/00/6 on June 30, 2000.

HDFC Asset Management Company Ltd(AMC) was formed under the Companies Act, 1956, on December 10, 1999, and was conformed to act an Asset Management Company for the HDFC Mutual Fund by SEBI vide its letter dated July 3, 2000. In accordance with the Investment Management Agreement, the Trustee has authorized the HDFC Asset Management Company Limited to administer the Mutual Fund.

Board of Directors for HDFC Asset Management Company Ltd.

The Board of Directors of the HDFC Asset Management Company Limited (AMC) consists of the following eminent persons.

  • Mr. Deepak S. Parekh (Chairman, Housing Development Finance Corporation Ltd.)
  • Mr. P. M. Thampi (Director, Strides Acrolab Limited)
  • Mr. Humayun Dhanrajgir (Director, HDFC Asset Management Company Limited (AMC))
  • Dr. Deepak B. Phatak (Professor of Dept. of Computer Science & Engg., IIT Bombay. )
  • Mr. Hoshang S. Billimoria (Director, Fenner Conveyor Belting Private Limited)
  • Mr. Rajeshwar Raj Bajaj (Chairman, Lerch Bates Private Limited)
  • Mr. Vijay Merchant (Director, Virat Industries Limited)
  • Mr. Keki M. Mistry (Vice-Chairman & CEO, Housing Development Finance Corporation Ltd.)
  • Ms. Renu S. Karnad (Managing Director, Housing Development Finance Corporation Limited)
  • Mr. N. Keith Skeoch (Director, HDFC Asset Management Company Limited (AMC))
  • Mr. James Aird (Director, HDFC Asset Management Company Limited (AMC))
  • Mr. Milind Barve (Managing Director, HDFC Asset Management Company Ltd (AMC))

Registrar

The registrar of HDFC Asset Management Company Pvt. Ltd is Computer Age Management Services Pvt. Ltd.

Fund Managers

The list of Fund Managers are as follows:

  • Mr. Prashant Jain (Executive Director & Chief Investment Officer)
  • Mr. Shobhit Mehrotra (Senior Fund Manager and Head of Credit)
  • Mr. Vinay R. Kulkarni (Senior Fund Manager)
  • Mr. Anil Bamboli (Senior Fund Manager)
  • Mr. Chirag Setalvad (Senior Fund Manager)
  • Mr. Srinivas Rao Ravuri (Senior Fund Manager)
  • Mr. Rakesh Vyas (Dedicated Fund Manager for Overseas Investments)
  • Mr. Miten Lathia (Fund Manager)
  • Mr. Krishan Kumar Daga (Senior Fund Manager)
  • Mr. Anupam Joshi (Fund Manager- Fixed Income)

Products offered by HDFC Mutual Fund

1. Equity/Growth Fund

These funds are designed to invest in equity or stock markets. The several fund options under this scheme are meant to fulfill the long or short-term investment needs of the investors. These funds are active and passively managed.

The following are the list of Equity Funds offered by HDFC Mutual Fund :

  • HDFC Equity Fund
  • HDFC Top 200 Fund
  • HDFC Mid-Cap Opportunities Fund
  • HDFC Prudence Fund
  • HDFC Balanced Fund
  • HDFC TaxSaver (ELSS)
  • HDFC Arbitrage Fund
  • HDFC Infrastructure Fund
  • HDFC Capital Builder Fund
  • HDFC Small Cap Fund
  • HDFC Core and Satellite Fund
  • HDFC Equity Savings Fund (Erstwhile HDFC Multiple Yield Fund)
  • HDFC Index Fund - Nifty Plan
  • HDFC Long Term Advantage Fund (ELSS)
  • HDFC Index Fund - SENSEX Plan
  • HDFC Index Fund - SENSEX Plus Plan
  • HDFC Growth Fund
  • HDFC Large Cap Fund - (Formerly Morgan Stanley Growth Fund)
  • HDFC Premier Multi-Cap Fund
  • HDFC Focused Large-Cap Fund

2. Debt/Income Fund

These funds predominately invest in short/long term bonds, money market instruments, and floating rate debts etc. The focus is to generate an income for the investors and HDFCMF are exactly meant to achieve this objective.

The following are the list of Debt Funds offered by HDFC Mutual Fund :

  • HDFC Gilt Fund - Long Term Plan
  • HDFC Medium Term Opportunities Fund
  • HDFC Short Term Opportunities Fund
  • HDFC Corporate Debt Opportunities Fund
  • HDFC Short Term Plan
  • HDFC MF Monthly Income Plan - Long Term Plan
  • HDFC MF Monthly Income Plan - Short Term Plan
  • HDFC High Interest Fund - Dynamic Plan
  • HDFC Banking and PSU Debt Fund
  • HDFC High Interest Fund - Short Term Plan
  • HDFC Income Fund
  • HDFC Gilt Fund - Short Term Plan
  • HDFC Floating Rate Income Fund - Long Term Plan
  • HDFC Floating Rate Income Fund - Short Term Plan
  • HDFC Inflation Indexed Bond Fund - (Formerly Morgan Stanley Gilt Fund)
  • HDFC Cash Management Fund-Treasury Advantage Plan
  • HDFC Multiple Yield Fund - Plan 2005

3. Liquid Funds

Investment made in liquid funds comprise of securities with a maturity of upto 91 days. The assets parked in this scheme are not employed for a longer duration as liquid funds do not have a lock-in period. They offer high-liquidity and come without exit loads.

The following are the list of Liquid Funds offered by HDFC Mutual Fund :

  • HDFC Cash Management Fund - Savings Plan
  • HDFC Cash Management Fund - Call Plan
  • HDFC Liquid Fund Premium Plan
  • HDFC Liquid Fund

4. Children's Gift Fund

These funds provide a favourable opportunity to its investors for capital growth over a long term. These are designed to prepare oneself for the needs of their growing children.

There are two funds covered under Children' Gift Fund:

  • HDFC Children's Gift Fund - Savings Plan
  • HDFC Children's Gift Fund - Investment Plan

5. Retirement Savings Fund

These funds offer pension to an investor in the form of income until the value gets redeemed for holding of the units till the age of 60 years. It invests in a mixed combination of securities such as equity, equity related instruments and in debt or money market instruments. HDFC Retirement Savings Fund is the only product in this category which is offered by HDFC Mutual Fund.

6. Fixed Maturity Plan

These funds invest predominately in government securities and debt/money market instruments. They come in close-ended schemes and offer low risks to investors. There are various FMP Plans offered by HDFC Mutual Fund which varies month and year-wise.

7. Exchange Traded Funds

These funds provide returns in close proportion to the performance of the gold subject to tracking error. They are classified as high-risk investment and offer low fees as compared to other mutual funds.

There are three schemes covered under HDFC Exchange Traded Funds:

  • HDFC Gold Exchange Traded Fund
  • HDFC Nifty ETF
  • HDFC Sensex ETF

8. Rajiv Gandhi Equity Savings Scheme

This scheme provides tax benefits to investors. It seeks to derive capital appreciation by investing in a portfolio of securities covered under Rajiv Gandhi Equity Savings Scheme. The small investors are encouraged to invest in the capital markets.

There are three schemes covered under Rajiv Gandhi Equity Savings Scheme:

  • HDFC Focused Equity Fund - Plan B
  • HDFC Focused Equity Fund - Plan A
  • HDFC Rajiv Gandhi Equity Savings Scheme - Series 2

9. Dual Advantage Fund

This scheme invests in a combination of debt and money market securities which have a maturity period on or before the maturity date of the scheme. The scheme foster capital growth and invest a portion of the portfolio in equity and equity related securities.

There are various schemes covered under Dual Advantage Fund :

  • HDFC Dual Advantage Fund - Series III – 1224D
  • HDFC Dual Advantage Fund - Series III – 1267D
  • HDFC Dual Advantage Fund - Series III – 1304D
  • HDFC Dual Advantage Fund - Series II – 1111D
  • HDFC Dual Advantage Fund - Series II – 1099D
  • HDFC Dual Advantage Fund - Series II – 1160D
  • HDFC Dual Advantage Fund - Series I - 1100D

10. Capital Protection Oriented Schemes

This scheme focuses towards income generation by investing in debt markets. The securities covered under this scheme have fixed maturity dates and provide low-risk investment environment.

There are various schemes covered under HDFC Capital Protection Oriented Fund

  • HDFC CPO - III - 1173D January 2015
  • HDFC CPO - III - 1207D December 2014
  • HDFC CPO-III- 1100D October 2014
  • HDFC CPO-II-36M June 2014
  • HDFC CPO-II-36M May 2014
  • HDFC CPO - II - 36M February 2014
  • HDFC CPO - I - 36M October 2013
  • HDFC CPO-I-36M September 2013
  • HDFC CPO-I-36M August 2013

11. Fund of Fund Schemes

This fund is aimed to foster capital growth by managing the asset allocation between prescribed equity and debt securities of HDFC Mutual Fund. These schemes are open-ended fund-of-fund schemes and carry high-risks, which also means that they can provide higher returns.

There are only two funds covered under Fund of Fund schemes:

  • HDFC Dynamic PE Ratio FOF - (Formerly Morgan Stanley Multi Asset Fund)
  • HDFC Gold Fund

12. Annual Interval Fund - Series 1

This plan endeavours to generate income by investing in debt and money market securities, also in government securities whose maturity period falls on or before the start of the consecutive Specified Transaction Period. They offer investors a low-risk portfolio of investments. There is only one fund covered under this category, which is HDFC Annual Interval Fund - Series 1 - Plan A, B.

13. Cancer Cure Fund

This fund aims to provide sufficient returns for cancer patients to undergo medical treatment.

There are only two funds covered under Annual Interval Fund-Series 1 :

  • HDFC Charity Fund for Cancer Cure
  • HDFC Debt Fund For Cancer Cure 2014

Disclaimer: Mutual Fund Investments are subject to market risks, read all scheme related documents carefully before investing.

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