HDFC or the Housing Development Finance Corporation Limited, headquartered in Mumbai is an Indian financial services company that has extended its operations in the areas of banking, mutual funds, insurance, mortgages etc. It was established in 1977 as the first specialized mortgage company and has grown into a distribution network with subsidiaries such as HDFC Bank, HDFC Standard Life Insurance Company Limited, and even HDFC Asset Management Company, bolstering the effort of financial services.

About HDFC Mutual Funds

Mutual Fund is one such product offered by the HDFC Mutual Fund, a well-established mutual fund house which launched its first scheme in July 2000. It commenced its operations as a trust under HDFC along with Standard Life Investments Limited as the sponsor. HDFC Trustee Company Limited acts as a trustee of the company. The company has grown extensively to offer mutual funds across 12 different types of funds.

In a recent drive, HDFC Mutual Funds entered into an agreement with Morgan Stanley Investment Management Private Limited and the Board of Trustees of Morgan Stanley Mutual Fund for the purchase of Mutual Fund schemes. The change in the names and fundamental attributes of Morgan Stanley mutual fund schemes into HDFC Mutual Fund has pushed forward the competitive spirit amongst other players in the mutual funds market.

Why to invest in HDFC Mutual Funds?

HDFC Mutual Fund has diverse schemes offered to the investors. The company gives a chance to its investors to make a right selection as per their own needs. The other reasons which cite HDFC Mutual Fund as a preferred investment are as follows :

  • The products offered by HDFC Mutual Fund is ranked 3rd and above as per the ratings done by CRISIL.
  • Availability of huge funds for investment.
  • Investors can gain from tax exemption by investing in HDFC Mutual Fund.
  • Classification of funds based on the maturity such as long-term to short-term funds under the categories of open-ended and closed-ended funds.
  • Every investor's risk taking appetite is accommodated under different plans of HDFC Mutual Fund which offers low, medium and high-risk products. 

Features of HDFC Mutual Funds

  • Minimum Monthly SIP Installment-₹500, Quarterly SIP Installment-1,500
  • Both open and close-ended schemes are available for subscription
  • Funds are listed to either BSE/NSE
  • No entry load
  • Exit load chargeable at 1% on redemption or switch out of units within a year from the allotment. No exit load is applicable if the redemption or switch out happens after a year.

Types of HDFC Mutual Funds

Equity/Growth Fund:

HDFC growth funds are focussed towards investing predominately in equity markets. The different funds offered under this scheme are designed to fulfill the long-term or short-term needs of the investors. The management of these funds can be active or passive. The following are the list of HDFC Equity Mutual Funds:

  • HDFC Equity Fund
  • HDFC Top 200 Fund
  • HDFC Mid-Cap Opportunities Fund
  • HDFC Prudence Fund
  • HDFC Balanced Fund
  • HDFC Tax Saver(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

Debt/Income Fund:

HDFC Debt funds are aimed to invest in short-term/long-term bonds, floating rate debts, and money market instruments etc. The main objective of this investment is to generate income for the investor and that's what HDFC debt/income funds work towards it. Below is the list of Debt/Income 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

Liquid Funds:

Liquid Funds invest in securities with a maturity of up to 91 days. Assets employed in this scheme are not kept for a longer term as liquid funds do not have a lock-in period. This is a low-risk option available to investors. They provide high-liquidity and are offered without exit-loads. Below-mentioned is 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

Children's Gift Fund:

This fund seeks capital appreciation for investors over a long term. These are designed for those individuals in order to prepare themselves as per the needs of their growing children. There are two plans offered by HDFC Mutual Fund for Children's Gift Fund which are :

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

Retirement Savings Fund :

This fund forms a corpus for providing pension to an investor in the form of income until it redeems the value of their holding after the age of 60 years. It invests in a combination of securities including equity, equity related instruments and in debt or money market instruments.

Fixed Maturity Plan:

The main emphasis of this plan under the scheme is generation of income through investments in Debt/Money market instruments and Government securities having maturity on or before the date of the respective Plan. There are over 161 fixed maturity plans offered by HDFC Mutual Fund.

Exchange Traded Funds:

The exchange-traded funds aim to generate returns that closely track the performance of the gold, which are based on tracking error. This fund is classified as high-risk investment. There are three types of exchange-traded funds offered by HDFC Mutual Fund :

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

Rajiv Gandhi Equity Savings Scheme:

This scheme provides tax benefits to investors. It aims for a long-term capital appreciation from a portfolio of securities prescribed by Rajiv Gandhi Equity Savings Scheme. It encourages small investors to invest their savings in the domestic capital market. This scheme is offered under three categories which are described as follows:

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

Dual Advantage Fund :

This scheme aims to generate income by investing in a portfolio of debt and money market securities, having a maturity period on or before the date of maturity of the Scheme. The scheme focuses towards capital appreciation and invests a portion of the portfolio in equity and equity related securities. There are seven Dual Advantage Funds offered by HDFC Mutual Fund which are:

  • 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

Capital Protection Oriented Schemes:

This scheme is focussed towards protection of capital but not with assured returns. As the protection of capital emerges from the structure of Portfolio composition of the scheme. Overall the scheme provide returns by investing in a portfolio of debt and money market instruments which realize on or before the date of maturity of the Scheme. The scheme also invests in equity and equity related instruments so as to achieve capital appreciation. This investment is considered to be low-risky for investors. Below are the several capital protection oriented schemes offered by HDFC Mutual 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 DEBT FUND FOR CANCER CURE 2014
  • HDFC CPO - II - 36M February 2014
  • HDFC CPO-II-36M January 2014
  • HDFC CPO - I - 36M October 2013
  • HDFC CPO-I-36M September 2013
  • HDFC CPO-I-36M August 2013

Fund of Fund Schemes:

This fund is focussed towards capital appreciation by managing the asset allocation between specified equity and debt schemes of HDFC Mutual Fund. These schemes fall under open-ended fund-of-fund schemes that have high-risk potential, which also means that they can deliver higher returns. There are two fund-of-fund schemes provided by HDFC Mutual Fund:

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

Annual Interval Fund - Series 1:

This plan aims to generate income by investing in debt and money market instruments, also in government securities which mature on or before the starting of the immediately following Specified Transaction Period. This provide investors a low-risk portfolio of investments. HDFC Annual Interval Fund is offered under Series 1-Plan A, B.

HDFC Mutual Fund Factsheet

Factsheets track the performance of mutual fund schemes in order to take an appropriate decision. HDFC Mutual Fund Factsheets are published every month and includes the following details :

  • The portfolio showing the allocation of your money in a scheme that has been allotted to different securities.
  • The performance of the scheme –depicted by CAGR, Beta, Standard Deviation and Sharpe Ratio so as to measure your risk assessment criteria.
  • The considerable size and investment details of the scheme.

HDFC Mutual Fund Account Statement

HDFC Mutual Fund Account Statement provides a complete picture of the summarized transaction details such as date of purchase, redemption or switch from particular schemes, a number of units held, mode of payment during transaction etc. In short, it shows the investors-- the number of transactions made within their stay in the scheme.

Also, HDFC Mutual Fund sends the electronic 'Statement of Account' to the investors email ID. Investors need to register their email ID with the fund house and to obtain the Folio number which represents their number of holdings within the HDFC Mutual fund schemes. The statement of account discloses the last 5 transaction details made under the folio.

HDFC MF Online

With the launch of HDFCMFOnline, allows the investors to transact online at their convenience i.e. 24 hours a day, 7 days a week & 365 days in a year. HDFCMFOnline can help you :

Step 1 : To purchase the number of units of any HDFC Mutual Fund scheme

Step 2 : To redeem the number of units

Step 3: To switch into another units of HDFC Mutual fund scheme

Step 4: To Register for Systematic Transactions(SIP / STP / FLEXINDEX / FLEXSTP)

Step 5: To view your account details

Step 6: To view the valuation of your portfolio

Step 7: To download your account statements Online!

For meeting out the above online formalities, an investor needs to transact in :

  • An existing folio
  • An email Id(which is registered in the folio)
  • HPIN (HDFC Personal Identification Number)

 

DISCLAIMER - Mutual Fund investments are subject to market risks. Please read all the scheme related documents carefully before investing.