HDFC Mutual Fund is among the top fund houses in the country. It offers a very diverse range of investment options, including equity options, debt options as well as Gold ETFs. Here are 7 very diverse range of HDFC Mutual Fund Schemes that you can buy.
HDFC Hybrid Equity Fund
This fund invests in both debt as well as equity. It is one of the top schemes of HDFC Mutual Fund with sizeable assets under management of more than Rs 21,000 crores. The medium to long term returns have been reasonable, though not exceptional. One of the reasons for not being exceptional is the condition of the Indian stock markets currently.
The 5-year returns have been 9.10 per cent, while the 10-year returns have been 14 per cent. Among the stocks that the fund has holding in includes the likes of HDFC Bank, ICICI Bank, HDFC, Infosys etc. No doubt the portfolio of the fund is solid.
The debt holdings include debentures of Tata Sons, Bonds of Axis Bank and Government of India securities.
HDFC Gold ETF
HDFC Gold ETF has generated stupendous returns of 30 per cent in the last one year. However, the 5-year returns have been more subdued at 5.99 per cent. One can consider Gold ETFs, only as a measure of diversification. Gold ETFs can be bought and sold through the exchanges like shares.
The good thing about Gold ETFs is that they track prices of physical gold and at the same time, you do not have worries of theft and incurring locker charges expenses, like you would for physical gold.
It is not prudent to buy physical gold and investors should look to options like Gold ETFs. As indicated earlier, it is an excellent tool for diversification purposes and investors should opt for at least partially of the same.
HDFC Money Market Fund
Those looking at relatively safe returns can opt for debt funds. These funds do not invest their money in equities, but, park bulk of their money in debt. So, to an extent they are relatively safe.
HDFC Money Market Fund has given returns of around 8.60 per cent in the last one year, while the 3-year returns have been 7.40 per cent.
Since money market funds tend to invest bulk of their assets in debt instruments, the returns from these funds are more like bank deposit interest rates. Extraordinary returns are seldom seen. Go for this fund, if you are looking at stability and risk free investment.
HDFC Top 100 Fund
This fund is a largecap fund, which invests bulk of its money in largecap stocks. The fund has generated a return of 11.33 per cent over the last 10 years, while the short term return of 5 years has been 6.33 per cent.
The fund has siezable assets under management of Rs 17,000 crores. The fund's top holdings include the likes of ICICI Bank, State Bank of India, Reliance Industries and Infosys.
This is a fund that invests bulk of its money in equities, Hence, the returns can be risky. Also, to be honest in the last 5-years, the returns of most of the largecap mutual fund has been very ordinary, thanks to the market conditions.
HDFC Micap Opportunities Fund
This fund has had a disastrous run in the last 1-year. The returns have been very poor at -18 per cent. The 3-year returns from the fund has been 3 per cent, while the 5-year returns has been reasonable at 9 per cent.
We wish to warn readers that midcap funds are highly risky and hence one must exercise some caution before investing. The HDFC Midcap Opportunities Fund has sizeable assets under management of nearly Rs 20,000 crores.
Among the shares that HDFC Mutual Fund has invested include the likes of Cholamandalam Finance, Aarti Industries, Sundaram Fasteners, City Union Bank, Voltas etc.
HDFC Balanced Advantage Fund
This is clearly the largest mutual fund scheme from the HDFC Mutual Fund stable, with assets under management of more than Rs 41,000 crores.
This is more a balanced fund investing in a mix of debt as well as equity. Among the debt holding include the likes of State Bank of India Bonds, Tata Sons Debentures etc. The returns from the fund have not been too great in the last few years. The 3-year returns has been 6.34 per cent, while the 5-year returns has been 7.14 per cent.
HDFC Credit Risk Debt Fund
HDFC Credit Risk Debt Fund is for those looking to invest in debt through HDFC Mutual Fund. The fund has generated decent returns in the last few years, though it has not been exceptional. The fund has holdings in bonds of Tata International and Debentures of Tata Steel.
It also holds the bonds of HDFC Bank. Go for the scheme, if you want to invest in something that is relatively safe.