HDFC Mutual Fund has announced a new fund offer (NFO) for the HDFC Ultra Short Term Fund. The NFO for this new scheme has started on 18th September and will end on 24th September. Operating as an open-ended fund with no exit load, it will allow investors to invest in and redeem scheme units on all business days without incurring additional costs.
HDFC Ultra Short Term Fund will mainly invest in money market and debt instruments with allocation of up to 100% of total assets. Moreover, up to 75% of the scheme’s investments may be made into foreign securities. This debt fund can also invest in REITs (Real Estate Investment Trusts) and InvITs (Infrastructure Investment Trusts) units provided these investments do not comprise over 10% of the scheme’s portfolio. Additionally the scheme will also retain the flexibility to invest up to 100% of assets in derivatives.
CRISIL Ultra Short Term Debt Index will serve as the benchmark for this new scheme from HDFC MF. This index tracks the performance of a portfolio consisting of certificates of deposit, commercial papers, highly rated short term corporate bonds (AAA/AA+/AA) and treasury bills. As of 31st August 2018, the CRISIL Ultra Short Term Debt Index has provided returns of 7.13%, 7.23% and 8.07% for the 1 year, 3 year and 5 year periods respectively.
HDFC Ultra Short Term Fund will be co-managed by Anil Bamboli and Rakesh Vyas. Popular schemes current managed by them (individually or as co-managers) include the HDFC Short Term Debt Fund (AUM Rs. 9441 crores), HDFC Money Market Fund (AUM Rs. 3924 crores) and HDFC Dynamic Debt Fund (AUM Rs. 1101 crores as of 31st August 2018).
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Additional details of the HDFC Ultra Short Term Fund NFO:
| Minimum Investment | Rs. 5000 |
| Options | Growth/Dividend (daily reinvest/weekly payout and reinvest/monthly payout and reinvest) |
| Benchmark | CRISIL Ultra Short Term Debt Index |
| Fund Managers | Anil Bamboli and Rakesh Vyas |
Other Funds by HDFC Asset Management
| Scheme Name | 3Y Returns (%) | AUM(Rs. Cr.) | Category |
| HDFC Index Sensex Direct Plan | 13.96 | 108.9 | Large Cap Fund |
| HDFC Index Fund Nifty 50 Plan | 12.11 | 345.2 | Large Cap Fund |
| HDFC Retirement Savings Fund – Hybrid Equity Plan | 10.96 | 171.8 | Aggressive Hybrid Fund |
| HDFC Long Term Advantage Fund | 10.45 | 1591.08 | ELSS |
| HDFC Gold Direct Plan | 10.4 | 219.75 | Gold Funds |
| HDFC Retirement Savings Fund Equity Plan | 9.92 | 459.93 | Multi Cap Fund |
| HDFC Small Cap Fund | 9.24 | 3646.65 | Small Cap Fund |
| HDFC Hybrid Equity Fund | 8.82 | 302.49 | Aggressive Hybrid Fund |
| HDFC Equity Direct Plan | 8.63 | 21553.37 | Multi Cap Fund |
| HDFC Banking and PSU Debt Fund | 8.45 | 3631.29 | Banking and PSU Fund |
| HDFC Retirement Savings Fund – Hybrid Debt Plan | 8.32 | 57.17 | Conservative Hybrid Fund |
| HDFC Medium Term Debt Fund | 8.31 | 1606.65 | Medium Duration Fund |
| HDFC Top 100 Fund | 8.29 | 15031.09 | Large Cap Fund |
| HDFC Corporate Bond Fund | 8.27 | 11486.21 | Corporate Bond Fund |
| HDFC Short Term Debt Fund | 8.25 | 10957.56 | Short Duration Fund |
| HDFC Credit Risk Debt Fund | 7.96 | 13788.94 | Credit Risk Fund |
| HDFC Capital Builder Value Fund | 7.77 | 3053.17 | Value Fund |
| HDFC Floating Rate Debt Fund | 7.76 | 18830.54 | Floater Fund |
| HDFC Low Duration Fund | 7.72 | 11058.07 | Low Duration Fund |
| HDFC Balanced Advantage Fund | 7.61 | 1180.88 | Dynamic Asset Allocation |
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