HDFC Mutual Fund NAV and Scheme Details
HDFC Asset Management Company or more popularly known as HDFC Mutual Fund is one of the largest equity mutual funds in the country. The AMC is one of the most profitable ones in the country as well.
HDFC Mutual Fund offers a myriad of solutions or schemes under their banner. And a majority of them have been consistent performers over the years. Thus, it should not come as a surprise that more and more people are inclined towards being associated with HDFC mutual funds.
HDFC mutual funds offer solutions for debt as well as equity schemes. Should you consider the different assets and risk categories that they are split into, you have a wide range of investment options to choose from.
HDFC Asset Management Company
HDFC Asset Management Company came into existence on the 10th of December 1999. But it was only on 3rd July 2000 that it received authorization from SEBI to operate as an asset management company. The earlier HDFC equity schemes have been around since 1995.
Individuals who take their investments a bit more seriously and look at different aspects such as CRISIL rating would find HDFC Mutual Fund favourable. HDFC Mutual Fund is the first AMC in the country to receive CRISIL Fund House Tier-1 rating. This is the highest rating that a fund house can receive. The score essentially outlines quality governance and fund management by the AMC.
As far as equity scheme mutual funds are concerned, HDFC accounts for 16.2% of all funds in the country. Here are a few stand out features of HDFC mutual funds for the last 5 years.
- Operating profit stood at 20.08%
- Revenue generated from various operations stood at 17.41%
- Profit generated before taxes stood at 21.35%
- Profit generated after taxes stood at 21.07%
- Total asset under management for equity schemes stood at 25.86%
HDFC Mutual Fund Scheme Details
Here is a list of some of the most popular mutual funds from HDFC AMC. Depending on your risk appetite and holding period, you can opt from the below funds.
HDFC Balanced Adv Fund
HDFC balanced adv fund allocates your funds into equity and bond baskets. There isn’t an exact proportion for either of the baskets. This lets the fund manager fluctuate the allocations so as to better handle market situations.
As compared to pure equity-based funds, HDFC balanced adv fund would invariably see lesser decline albeit the debt allocations. Should you hold on to the fund for a minimum of 5 years, the fund should be able to beat inflation and provide good returns. And if you decide to redeem the units within a year of investing, a 1% charge awaits you (for more than 15% redemption).
HDFC Midcap Opportunities Fund
HDFC Midcap Opportunities Fund allocates your funds to medium-sized companies. Since a majority of the investments are in medium-sized companies, the fund value can fluctuate a lot. If there is a fall in the market, the fund value might fall steeper than a fund that focuses on larger sized companies. On the plus side, the fund offers greater returns as well.
If you can hold on to the funds for a timeframe of 5 to 7 years, you give yourself much better chances of handsome returns. You would end up paying 1% as an exit load charge if you redeem any units within a year of investing. HDFC Midcap Opportunities Fund does come with a higher risk profile as well.
You can invest in the HDFC Midcap Opportunities Fund Growth option for long term wealth creation. While you can also opt for a dividend option, HDFC Midcap Opportunities Fund Growth helps you make the most of capital appreciation.
HDFC Small Cap Fund
HDFC Smallcap Fund allocates your funds to small-sized companies. As the investments are predominantly in small-sized companies, the fund tends to see a lot of fluctuations as well. Compared to funds that focus on large or medium-sized companies, HDFC Smallcap Fund value can erode quite a bit during lows of the market.
However, the fund also offers excellent growth opportunities when things get going. The fund is ideal for a 5 to 7-year time horizon and will help you beat inflation quite comfortably. You will end up paying a 1% exit load as charges for redemptions within a year of investing.
Conclusion
Investors who wish to maximize their wealth over time should consider adding HDFC mutual funds to their portfolios. One of the smarter ways to approach wealth creation is to opt for SIP or Systematic Investment Plan.
You can choose a fund of your choice from the above or other HDFC funds and opt for a SIP. It will help you achieve your financial goal without having to actively manage your portfolio. The SIP route will also provide the benefits of compounding and thus even healthier returns.
