To invest funds in debt markets or in equity from a pool of money of several people is called Mutual Fund. The HDFC bank offers HDFC Mutual Fund which is one of the known Indian Mutual Funds. The Debt funds, balanced funds or Equity funds come under Mutual Funds. There are parameters which are quantitative based on which the funds are selected. The volatility, risk adjustment returns, FAMA model, rolling return, qualitative analysis, fund performance are some of the important parameters based on which the funds are selected.
HDFC Mutual Fund Advantages
There are many advantages in investing HDFC mutual funds. The following are some of the advantages,
Affordability – The HDFC mutual funds are available in smaller units which make it more affordable.
Flexibility – The HDFC mutual fund offers systematic withdrawal plans, dividend reinvestment, systematic investment plans which give more flexibility.
Liquidity – The HDFC mutual fund offers open ended schemes in which you can withdraw the money at any point of time.
Professional Management – Based on extensive research and experience the expert fund managers analyze the options in HDFC mutual funds.
Diversification – The risk factor is low in HDFC mutual funds as the investment is done across different stocks and industries.
Low Costs – The custodial fee, brokerage charges are low for HDFC mutual funds.
Potential Return – The HDFC mutual fund managers have access to statistics and information from leading analysts and economists around the world. Because of this, the investors of HDFC mutual funds gain potential returns.
Regulated for Investor Protection – The HDFC mutual fund sector is regulated to protect the interests of investors.
You can view the performance of the HDFC mutual funds at a glance at the HDFC bank website. The details of analyzed funds are presented in the form of fact sheets. These fact sheets are updated on a monthly basis. The HDFC mutual funds can be buy and sell online from the HDFC bank website. You can also visit your nearest HDFC bank branch to invest in HDFC mutual funds.
Once you register for HDFC mutual funds, your HDFC bank savings account will be linked to investment services. You can perform three type of transactions purchase, redeem and switch. You can view all your holdings online. Once any transaction is performed no cancellation is encouraged.
The various kinds of mutual funds provided by the bank are:
• HDFC Mid – Cap Opportunities Fund: Closed end fund which invests in small as well as mid cap stocks.
• HDFC Infrastructure Fund: Closed end equity mutual fund which invests in stocks of the infrastructure companies.
• HDFC Long Term Equity Fund: Closed end equity mutual fund and has a maturity period of 5 years. This fund has diversified stocks for risk minimization.
• HDCF Index Fund – Nifty Plan: This is an index fund and tracks nifty. The scheme is open ended and the expense ratio is 1%.
• HDFC Index Fund – Sensex Plus Plan: 80-90% of the asset in this fund is invested in Sensex stocks and the rest is invested outside Sensex.
• HDFC Index Fund – Sensex Plan: This plan passively tracks the Sensex.
• HDFC Tax Saver (ELSS): Open-ended scheme with a lock-in period of 3 years and provides benefits of tax saving.
• HDFC Prudence Fund: Open-ended fund where the allocation in equity and debt depends on the market condition.
• HDFC Arbitrage Fund: An arbitrage fund where arbitrage opportunities are exploited between the derivatives and spot market.
• HDFC Premier Multi Cap Fund: This is a fund which is growth oriented and investments are made in the mid cap and large cap blue chip companies.
• HDFC Capital Builder Fund: This is a fund which is actively managed and the assets are invested in companies which are strong and are below the fair value.
• HDCF Equity Fund: Open ended fund where the investments are made companies which are expected to outperform their peers.
• HDFC Long Term Advantage Fund (ELSS): Investments are done in equity and instruments related to equity. This fund is closed ended with a lock-in period of 3 years.
• HDFC Balanced Fund: It is a balanced open-ended fund where investments are made in equity and debt.
• HDFC Core and Satellite Fund: Open-ended fund investing in stocks which are performing below the true value.
• HDFC Top 200 Fund: This fund invests in the equities and instruments linked with equity but are drawn from the companies listed in the BSE 200 Index.
• HDFC Growth Fund: Open-ended fund and invests primarily in equities and instruments linked with equity.