This HDFC Debt Mutual Fund Delivers Over 20% Absolute Return In 3-Years

Medium and long-term mutual funds managed to generate muted returns in 2022-23 as RBI introduced several rate hikes during this tenure to curb inflation and boost economic growth. Short term debt mutual performed better. The impact remains higher on medium to long-term debt mutual funds as they tend to become more sensitive to movement in interest rates.

We have picked one HDFC debt mutual fund that managed to deliver attractive returns to investors in the last 3 years:

HDFC Banking and PSU Debt Fund - Direct Plan: The fund has been rated 3-star by Crisil. Please be informed that we are just highlighting the schemes that are well rated and this in no way should be construed as a recommendation from our side. We do not make any buy calls fort mutual funds or for stocks.

Absolute Returns: HDFC Banking and PSU Debt Fund has given absolute returns of 20.21% in last 3-years.

Annualised Returns: The fund gave 6.33% annualised returns in the last 3-years.
Investment Details: You need a minimum investment of Rs 100 and minimum SIP investment of Rs 100. The lock-in period is not applicable in this scheme as it is an open ended fund.

Asset Under Management: The asset under management of the fund is Rs 5,590 crore as of March 31, 2023.

Launch Date: It was launched on March 26, 2014 and since launch date, it has given return of 8.04%.

SIP Investment: An SIP Investment of Rs 36,000 started on April 24, 2020 would have become 38,987.68 as of April 24, 2023 with an absolute return of 8.3% and annualised return of 5.25%.

Holding: The fund has 59.71% holding in AAA rated debt instruments followed by other rating wise holdings that may include SOV, Cash equivalent, A1+, AA. Among top holdings, the fund has 4.94% investments in GOI Sec 04/10/2028, 4.02% Small Industries Devp. Bank of India Ltd SR IX Debenture 7.59 10/02/2026, 3.12% in Power Finance Corporation Ltd SERIES 192 NCD 7.42 19/11/2024.

Disclaimer: Mutual fund investments are subject to market risk. Read all scheme-related 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.