This Debt Income Fund Has Delivered Good Returns Over The Years, Up To 32.55% In 5 Years

Savings are a vital element of our financial objective, and we should look at many types of investments to get there. As mentioned, it is a debt Income Fund is a fixed-income investment vehicle in which the fundamental assets are fixed-income securities. We have given highlights of one such income debt fund that has given good returns over the years.

HDFC Income Fund - Direct Plan-Growth

Launched by HDFC Mutual Fund, this Income fund is an open-ended medium to long-duration mutual fund scheme. The Direct Plan-Growth scheme AUM is Rs 582.04 Crore. The NAV or Net Asset Value of this scheme declared on 31st March 2022 is Rs 51.2869. Its expense ratio is 0.51%. It is a debt medium-sized fund of its category. This scheme aims to generate income through investments in debt and money market instruments.  

 
On the risk meter, it is risky but moderate risky. Its returns performance is below among peer funds. The minimum investment amount required for lump sum payment is Rs 5000 and for SIP, the minimum amount required is Rs 300. This scheme has no lock-in period.

Absolute And Annualized Returns

Lump-Sum investment Returns

HDFC Income Direct Plan-Growth returns of In the last 1 year, this fund's scheme has delivered 4.02% annualized returns. While the average annual return since its inception is 7.41%.

Investment Period	Absolute Returns	Annualised Returns
1 Year	4.02%	4.02%
2 Year	10.52%	5.13%
3 Year	21.67%	6.74%
5 Year	32.55%	5.80%
Since Inception	93.74%	7.41%

SIP Returns

SIP Period	Absolute Returns	Annualised Returns
1 Year	1.62%	3.01%
2 Year	4.02%	3.84%
3 Year	8.10%	5.13%
5 Year	16.15%	5.93%

Portfolio

The fund has an 83.32 percent debt investment, with 37.77 percent in government securities and 45.55 percent in extremely low-risk assets.

The fund's credit record is excellent, suggesting that it has lent to high-quality customers. Because most funds in this category lend to stronger borrowers, the risk of default is higher in this fund than in others in the category.

GOI, Rural Electrification Corp. Ltd., Housing Development Finance Corp. Ltd., Reliance Ports and Terminals Ltd., and National Thermal Power Corp. Ltd. are among the fund's top holdings.

Disclaimer

Mutual fund investments are subject to market risk. Read all scheme-related documents, and Terms and Conditions carefully before investing. The above-mentioned information is purely informational and doesn't guarantee any return. The Greynium Information Technologies and the Author are not liable for any losses caused as a result of a decision based on the article.