Equity / Growth Fund Debt/ Income Fund

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Introduction:

HDFC Asset Management Company Limited (AMC)

HDFC Asset Management Company Ltd (AMC) was incorporated under the Companies Act,
1956, on December 10, 1999, and was approved to act as an Asset Management Company for
the HDFC Mutual Fund by SEBI vide its letter dated July 3, 2000.

The registered office of the AMC is situated at Ramon House, 3rd Floor, H.T. Parekh Marg, 169,
Backbay Reclamation, Churchgate, Mumbai - 400 020.

In terms of the Investment Management Agreement, the Trustee has appointed the HDFC Asset
Management Company Limited to manage the Mutual Fund. The paid up capital of the AMC is
Rs. 25.161 crore.

Zurich Insurance Company (ZIC), the Sponsor of Zurich India Mutual Fund, following a review
of its overall strategy, had decided to divest its Asset Management business in India. The AMC
had entered into an agreement with ZIC to acquire the said business, subject to necessary
regulatory approvals.

FC Floating Rate Income Fund , HDFC Liquid Fund, HDFC Cash Management Fund and HDFC
Quarterly Interval Fund.

The AMC is also managing 7 closed ended Schemes of the HDFC Mutual Fund viz. HDFC Long
Term Equity Fund, HDFC Infrastructure Fund, HDFC Fixed Maturity Plans - Series XI, HDFC
Fixed Maturity Plans - Series XII, HDFC Fixed Maturity Plans - Series XIV, HDFC Fixed
Maturity Plans - Series XV and HDFC Fixed Maturity Plans - Series XVII.

The AMC is also providing portfolio management / advisory services and such activities are not
in conflict with the activities of the Mutual Fund. The AMC has renewed its registration from
SEBI vide Registration No. - PM / INP000000506 dated December 21, 2009 to act as a Portfolio
Manager under the SEBI (Portfolio Managers) Regulations, 1993. The Certificate of Registration
is valid from January 1, 2010 to December 31, 2012.
Products
Debt/ Income Fund
Equity / Growth Fund
Invest in money market and debt
Invest primarily in equity and equity
instruments and provide
related instruments.
optimum balance of yield, ...
Quarterly Interval Fund
Children's Gift Fund The primary objective of the
Children's Gift Fund Scheme is to generate regular
income through investme...
Fixed Maturity Plan
Invest primarily in Debt / Money
Market Instruments and Government
Exchange Traded Funds
Securities...
Invest primarily in equity and
Liquid Funds
equity related instruments.
Provide high level of liquidity by
investing in money market and debt
instruments.
Systematic Investment Plan (SIP)

HDFC MF SIP is similar to a Recurring Deposit. Every month on a specified date an amount you
choose is invested in a mutual fund scheme of your choice. The dates currently available for SIPs
are the 1st, 5th, 10th, 15th, 20th and the 25th of a month. You’ll be amazed to learn about the
many benefits of investing through HDFC MF SIP.

Benefit 1
Become A Disciplined Invester

Being disciplined - It’s the key to investing success. With the HDFC MF Systematic Investment
Plan you commit an amount of your choice (minimum of Rs. 500 and in multiples of Rs. 100
thereof*) to be invested every month in one of our schemes.

Think of each SIP payment as laying a brick. One by one, you’ll see them transform into a
building. You’ll see your investments accrue month after month. It’s as simple as giving at least
6 postdated monthly cheques to us for a fixed amount in a scheme of your choice. It’s the perfect
solution for irregular investors.
*Minimum amounts may differ for each Scheme. Please refer to SIP Enrolment Form for details.

Benefit 2
Reach Your Financial Goal

Imagine you want to buy a car a year from now, but you don’t know where the down-payment
will come from. HDFC MF SIP is a perfect tool for people who have a specific, future financial
requirement. By investing an amount of your choice every month, you can plan for and meet
financial goals, like funds for a child’s education, a marriage in the family or a comfortable
postretirement life. The table below illustrates how a little every month can go a long way.

Monthly Savings - What your savings may generate


Rate of return
Savings per month Total amount invested
6.0% 8.0% 10.0%
(for 15 years) (Rs. in Lacs)
(rupees in lacs, 15 years later)*
5000 9.0 14.6 17.4 20.9
4000 7.2 11.7 13.9 16.7
3000 5.4 8.8 10.4 12.5
2000 3.6 5.8 7.0 8.3
1000 1.8 2.9 3.5 4.2
*Monthly instalments, compounded monthly, for a 15-year period.

Disclaimer: The illustration above is merely indicative in nature and should not be construed as
investment advice. It does not in any manner imply or suggest performance of any HDFC Mutual
Fund Scheme(s). Please read Risk Factors.

Benefit 3
Take Advantage of Rupee Cost Averaging

Most investors want to buy stocks when the prices are low and sell them when prices are high.
But timing the market is timeconsuming and risky. A more successful investment strategy is to
adopt the method called Rupee Cost Averaging. To illustrate this we’ll compare investing the
identical amounts through a SIP and in one lump sum.

Imagine Suresh invests Rs. 1000 every month in an equity mutual fund scheme starting in
January. His friend, Rajesh, invests Rs. 12000 in one lump sum in the same scheme. The
following table illustrate how their respective investments would have performed from Jan to
Dec:

    Suresh’s Investment Rajesh’s Investment


Month NAV Amount Units Amount Units
Jan-04 9.345 1000 107.0091 12000 1284.1091
Feb-04 9.399 1000 106.3943    
Mar-04 8.123 1000 123.1072    
Apr-04 8.750 1000 114.2857    
May-04 8.012 1000 124.8128    
Jun-04 8.925 1000 112.0448    
Jul-04 9.102 1000 109.8660    
Aug-04 8.310 1000 120.3369    
Sep-04 7.568 1000 132.1353    
Oct-04 6.462 1000 154.7509    
Nov-04 6.931 1000 144.2793    
Dec-04 7.600 1000 131.5789    

*NAV as on the 10th every month. These are assumed NAVs in a volatile market

Disclaimer: The illustration above is merely indicative in nature and should not be construed as
investment advice. It does not in any manner imply or suggest performance of any HDFC Mutual
Fund Scheme(s). Rupee Cost Averaging neither ensures you profits nor protects you from
making a loss in declining markets. Pleaseread Risk Factors.

As seen in the table, by investing through SIP, you end up buying more units when the price is
low and fewer units when the price is high. However, over a period of time these market
fluctuations are generally averaged. And the average cost of your investment is often reduced.
At the end of the 12 months, Suresh has more units than Rajesh, even though they invested the
same amount. That’s because the average cost of Suresh’s units is much lower than that of
Rajesh. Rajesh made only one investment and that too when the per-unit price was high.

Suresh’s average unit price = 12000/1480.6012 = Rs. 8.105


Rajesh’s average unit price = Rs. 9.345

Benefit 4
Grow Your Investment With Compounded Benefits
It is far better to invest a small amount of money regularly, rather than save up to make one large
investment. This is because while you are saving the lump sum, your savings may not earn much
interest.

With HDFC MF SIP, each amount you invest grows through compounding benefits as well. That
is, the interest earned on your investment also earns interest. The following example illustrates
this.

Imagine Neha is 20 years old when she starts working. Every month she saves and invests Rs.
5,000 till she is 25 years old. The total investment made by her over 5 years is Rs. 3 lakhs.Arjun
also starts working when he is 20 years old. But he doesn’t invest monthly. He gets a large bonus
of Rs. 3 lakhs at 25 and decides to invest the entire amount.

Both of them decide not to withdraw these investments till they turn 50. At 50, Neha’s
Investments have grown to Rs. 46,68,273* whereas Arjun’s investments have grown to Rs.
36,17,084*. Neha’s small contributions to a SIP and her decision to start investing earlier than
Arjun have made her wealthier by over Rs. 10 lakhs.

*Figures based on 10% p.a. interest compounded monthly.

Disclaimer: TheThe illustration above is merely indicative in nature and should not be construed
as investment advice. It does not in any manner imply or suggest performance of any HDFC
Mutual Fund Scheme(s). Please read Risk Factors.

Benefit 5
Do All This Effortlessly

Investing with HDFC MF SIP is easy. Simply give us post-dated cheques or opt for an
Auto Debit from your bank account for an amount of your choice (minimum of Rs. 500 and in
multiples of Rs. 100 thereof*) and we’ll invest the money every month in a fund of your choice.
The plans are completely flexible. You can invest for a minimum of six months, or for as long as
you want. You can also decide to invest quarterly and will need to invest for a minimum of two
quarters.

All you have to do after that is sit back and watch your investments accumulate.
Please refer to the SIP Enrolment Form for terms and conditions before enrolment.
*Minimum amounts may differ for each Scheme.
Systematic Withdrawal Advantage Plan (SWAP)
Systematic Withdrawal Advantage Plan (SWAP) enables investors to redeem a pre-defined
amount from their investments at regular intervals. Every month on a specified date an amount
you choose is withdrawn from the scheme of your choice.

Unitholder has an option to select any one of the following SWAP withdrawal date i e 1st, 5th,
10th, 15th, 20th, 25th.
Currently, Fixed Systematic Withdrawal Advantage Plan is available for Monthly/ Quarterly /
Half yearly / Yearly intervals and Variable Systematic Withdrawal Advantage Plan is available
for Quarterly/ Half Yearly / Yearly intervals only.
Fixed Plan is available for Growth and Dividend option whereas Variable Plan is available for
Growth Option only.

Please click here to go through the revised terms and conditions in the Systematic Withdrawal
Advantage Plan (SWAP) facility as per addendum dated 24th December 2009.

Load Structure:
In respect of amount withdrawn under SWAP, the Exit Load, if any, applicable to the
Scheme/Plan as on the date of allotment of units shall be levied.

Please refer to the SWAP Enrolment Form for terms and conditions before enrolment

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