The one advantage of mutual fund schemes is you can diversify your portfolio as per your risk appetite and also switch money from debt to equities. At the moment the Sensex and the Nifty have closed at record highs and hence investors can look at debt and equity to diversify. We have chosen the 4-best equity mutual fund schemes from the HDFC Mutual stable that investors can invest in, based on their rankings and also 1-year returns. We wish to emphasize that we are in no way recommending these funds, as markets have hit record highs. Our purpose here is to provide you information.
HDFC Retirement Savings Fund
This fund is largely geared towards investing in equities and has invested as much as 93 of its assets in equities. The balance is held in cash and cash equivalents. Most of the holdings are in high quality bluechip stocks.
Among its top holdings from the equity space include names like Reliance Industries, HDFC Bank, ICICI Bank, Infosys and HDFC. The assets under management is not much and around Rs 1,400 crores as at the end of April 2021.
Equity investments at this stage are risky, look for Systematic Investment Plans, which can hedge your risk to an extent. One can invest through the SIP mechanism as well, where the minimum investment required is just Rs 500 every month. If you are looking at a short term duration, it is best to avoid such schemes.
HDFC Index Fund – Sensex Plan
This fund again like the HDFC Retirement Savings Fund is largely geared towards equity. It has been rated 5-star by Value Research and the entire fund is invested in equities. HDFC Index Fund has its largest holding in Reliance Industries and is than followed by names like HDFC Bank, HDFC, ICICI Bank etc.
Most of the mutual funds have these stocks in their portfolio. In fact, if it is a largecap fund portfolio, these stocks are always a part of the same. With the markets having soared in the last 1-year, to expect any kind of abnormal returns in the short to medium term would be expecting too much.
Hence, one can invest if you are looking for an investment horizon of 5-years and above.
HDFC Balanced Advantage Fund
This is one of the largest funds from the HDFC Asset Management stable. It invests in equity as well as debt to churn out returns, as well as manage risk. The funds under management are a staggering Rs 39,000 crores as on April 30, 2021.
The HDFC Balanced Advantage Fund is one of the most popular schemes from HDFC Mutual Fund. The fund was launched way back in 1994 and presently has a net asset value of Rs 256.99 under the growth plan.
Though it is largely a balanced fund, a bulk of the assets under management are skewed towards equity, with only about 13 or thereabouts in debt. The 1-year returns from the fund is 55%, while the 5-year returns are around the 13 per cent mark.
HDFC Multi-Asset Fund
This fund as the name suggests is a multi-cap asset fund and invests all its money in equity, debt as well as gold. The fund has generated a 1-year returns of around of 40%, while the 3-year returns are around the 12.11 per cent mark.
HDFC Multi-Asset Fund is slightly less risky compared to the other mentioned above, given that it has exposure to other asset classes as well.
A good bet for those looking at a slightly diversified portfolio of investment, with returns less volatile compared to vanilla equity funds.
The views and investment tips expressed by authors or employees of Greynium Information Technologies, should not be construed as investment advise to buy or sell stocks, gold, currency or other commodities. Investors should certainly not take any trading and investment decision based only on information discussed on GoodReturns.in We are not a qualified financial advisor and any information herein is not investment advice. It is informational in nature. All readers and investors should note that neither Greynium nor the author of the articles, would be responsible for any decision taken based on these articles. Please do consult a professional advisor. Greynium Information Technologies Pvt Ltd, its subsidiaries, associates and authors do not accept culpability for losses and/or damages arising based on information in GoodReturns.in