HDFC Mutual Fund launched an open-ended notified tax savings-cum-pension scheme called HDFC Retirement Savings Fund. The new fund offer (NFO) opened for subscription on February 5, 2016 and closes on February 19, 2016.
The investment objective of the scheme is to generate corpus to provide pension to an investor in the form of income after the age of 60 years. The scheme has three plans: equity, hybrid-equity and hybrid-debt plans. The equity plan is a full-fledged equity scheme that will invest 80–100% in equities and the rest in debt and money market instruments. The hybrid-equity plan will invest 60–80% in equities and the rest in debt and money market instruments. The hybrid-debt plan will invest 5–30% in equities and the rest in debt and money market instruments.
All the plans offer income tax deduction benefits under Section 80C and come with a 5-year lock-in period. The minimum application amount under each plan is Rs 5,000. There is no entry load while exit load of 1% is payable only if the units are redeemed before attaining the age of 60 years.
The equity plan will be benchmarked against Nifty 500 Index, hybrid-equity plan will be benchmarked against CRISIL Balanced Fund Index, and hybrid-debt plan will be benchmarked against CRISIL MIP Blended Index. The fund manager of equity portfolio is Chirag Setalvad while Shobhit Mehrotra will manage the debt portfolio. The overseas investments will be looked after by Rakesh Vyas. Chirag Setalvad is also managing the HDFC Midcap Opportunities Fund. However, he will use a multi-cap strategy for the retirement scheme and will invest in stocks and sectors across market capitalisation.
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 |
{Data as on Feb 17, 2020; Source: Value Research}