| There are no clear directions in the markets, investors revisit their portfolios Posted: 18 Aug 2011 05:03 AM PDT The stock markets were beaten to a low of 17,463 on February 10, 2011, down 15 per cent from a high of 21,005 on November 5, 2010. The slump came on the back of surging crude prices, rising interest rates and high inflation. After a brief lull, the Sensex somewhat recovered towards April, dipping or rising on company-specific news, like in the case of poor State Bank of India (SBI) results or Larsen & Toubro's impressive quarterly numbers, or the global markets. It is not surprising to see the Nifty lose or gain one per cent on a single day. This volatility has been the order of the day and will continue to be so for some time. It may have left many retail investors anxious about their investments. In fact, any positive movement in the stock market always attracts retail investors, irrespective of whether they understand the repercussions or not. This to be the right time to follow what market experts keep saying all day long on television channels: "Buy on dips". This 29-year old thinks market correction means cheaper valuations. If you have decided on a specific asset allocation, you should go for a re-jig only if the same has changed by over 10-15 per cent. Say, you have a debt-equity allocation of 40:60 and the same changes to 50:50. Use the opportunity to buy more equity. After the fourth quarter results, there are many largecap stocks that have corrected and this could be a good time to buy them. SBI is one such example. It has cleaned up its balance sheet and is expected to perform better in the coming quarters, say market experts. The bank's share price took a major hit, falling over 15 per cent after the fourth quarter results were announced. Infosys' margin guidance as conservative and embedding the worst case. The brokerage recommends buying aggressively, with a price target of `3,400. Markets have been volatile, but haven't moved much. Even the fundamentals have not changed dramatically. Investments are where they were last year. He dissuades investors from even touching their portfolio. Experts say the current market volatility should not be viewed as something out of the ordinary. There are no major structural changes in the markets calling for a portfolio re-jig. Ideally, markets moving up or down are no reason to change the balance. Retail investors should have a two-three years' view and such short-term volatility should not make any difference to them. Typically, you should have 80-90 per cent of your equity portfolio in largecap stocks or funds, with the remaining being in mid- and smallcaps. largecap funds returned slightly over 12 per cent, as on June. Mid- and smallcap funds gave 7.5 per cent in the same period. Do not touch your investment in large caps. However, midcaps have corrected quite a bit and could be bought if not already a part of the portfolio. If you already have mid caps, you could book profits on it (if held for over a year) and bought at cheaper levels. However, she advises caution when investing in this space. Buy funds instead of stocks, she suggests. To begin with, you should not buy midcap stocks by yourself. Instead, mid cap funds would be safer. If you do buy stocks, unlike largecaps, where four-five of these can make your portfolio, you should at least have 15-20 midcap stocks to make a portfolio. Last, buy larger midcap stocks Ideally, the ones on CNX midcap index or Nifty Junior would be safer bets. WHAT YOU SHOULD DO... Ø Rejig your portfolio only if the allocation has changed by over 10-15 per cent Ø Markets have been volatile but haven't changed fundamentally Ø Financial planners suggest sticking to last year's asset allocation Ø Good time to include more largecaps; beaten down after fourth-quarter results Ø Book profits on midcaps and buy at cheaper levels If not bought earlier, buy and accumulate larger midcaps  |
| Mutual Fund Review: UTI Liquid Cash Plan Posted: 18 Aug 2011 04:50 AM PDT Type Of Scheme
Open Ended Liquid Fund
Date Of Inception
23/06/2003
Scheme Objective
The scheme seeks to generate steady & reasonable income with low risk & high level of liquidity from a portfolio of money market securities & high quality debt.
Asset Allocation
Min. 65% in Money Market Instrument & Max. 35% in Debt.
Face Value
Rs. 1,00,000/-
Min Investment Amt
Cash Plan - Rs. 1 Lakh  |
| IndiaFirst Life Forays Into Health Insurance Posted: 18 Aug 2011 04:23 AM PDT
IndiaFirst Life Insurance forayed into the health insurance segment by launching a new product and said it expects to garner about 10% of its total premium within next three years. The company, a joint venture between public sector lenders Bank of Baroda and Andhra Bank along with UK-based investment firm Legal & General, also said it aims to sell at least 1 lakh health insurance policies within that period. As a line of business, health offers the best potential in the insurance sector. We have launched out first plan --IndiaFirst Money Back Health Insurance Plan --and in the coming days, we will come out with more offers. The Money Back Plan would offer protection to customers for up to 10 years. The minimum premium payout of the customer would be . 10,000. The health insurance cover would be a minimum for . 1.5 lakh and maximum of . 10 lakh.  |
| Should you invest in gold or silver? Posted: 18 Aug 2011 03:53 AM PDT It is really important for an investor to first understand the economy and the financial systems prevalent in the market before he decides what to invest in. With the cost of crude oil having increased considerably per barrel, the Indian government has also acted by increasing the price of petrol and diesel severely. Other stocks are now rallying to catch up with these prices. Should an investor buy more gold or silver?
According to a research concluded earlier this year, precious metals were the best performing assets for the second consecutive year and also for the fourth time in the last five years. Investors enjoyed a 42% return by investing in precious metals in 2010. Silver performed much better than other precious metals in the market in 2010 with prices rising by an astounding 80% which is two and half times the rice in price of gold (29%). Along with being deemed a safe investment, the relatively low supply of the metal as compared to the high demand has also contributed to the steady increase in price. In the first two months of 2011, silver's price has increased at a steady 9.3%.
Judging by the present market scenario, investing in precious metals will be a very wise decision. Currently it seems like silver is as good or even a better bet than gold for investment.
What are the parameters one should consider before investing in gold or silver?
One of the main reasons investors prefer investing in these two metals is the stability witnessed in the market. Liquefaction is also an easy process for gold or silver bars and coins. Do note that purity of the mineral is of utmost priority and should be given its due importance.
Another important factor governing the decision on whether to invest in gold or silver is the price. Though the variation in the price of gold or silver is not as unpredictable as that of shares and equities, there still is a noticeable difference on a daily basis. However, when you are investing a large sum of money then this small difference can make a lot of difference. Hence, one should study the market carefully and invest when the price is relatively low.
Choosing the right vendor is also very important. If carefully observed then the price variations with wholesalers, retailers and commercial banks can be clearly noted. In this manner one can watch out for the purest gold available at a comparatively low price. For a regular investor, it makes sense to invest at regular intervals. This way one can take advantage of the market volatility. Investing in both gold and silver makes sense for a regular investor as he can diversify and can have a steady return irrespective of market fluctuations.
Different forms of investing in gold and silver
Other than dealing with shares and certificates, there are a number of ways in which one can invest in gold or silver. A few have been listed here:
- Bar: One of the most traditional ways, dealing with bars is very simple too.
- Coins: This sort of investment depends on the weight of the gold or silver coins.
- Accounts: Swiss banks provide a Gold-account option which aids in transactions involving the precious metal.
- Gold Exchange Trade Funds: This method helps gold transactions through the stock exchange.
- Spread betting: This involves predicting the rise and fall in the price of gold or silver before investing in it.
- Investing with mining companies: This is just like investing in the stock exchange. The only difference is that here one deals with shares from mining companies.
When is the right time to sell gold or silver?
With the current financial slump, people are selling their gold and silver as a means to make some extra cash. With the price of the two precious metals having reached an all-time high, it would probably be wise to hold on to it and see how far the prices soar and then cash in at the opportune moment.
There are two factors that govern the decision of the timing of a transaction involving gold or silver, the value of the US Dollar at that moment and the investor's financial situation. Usually, the price of gold is inversely proportional to that of the US dollar. However, most investors don't have pure gold lying around in large quantities. So unless you are investing or speculating on a really large amount of gold or silver, the drop in the US Dollar's value will not matter.
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| Should you break your current Bank fixed deposit and reinvest? Posted: 18 Aug 2011 02:57 AM PDT The rate increase is good news for FD investors. But think before you break your FDs
The only segment of investors who have something to rejoice about in the present times of ever-increasing interest rates is the fixed deposit (FD) holders. FD holders are having a good time. In fact they are in a fix. With frequent rate increases, their old FDs tend to give a lower return compared to the existing interest rates.
The interest rates can go up to 10-12 percent on FDs in the coming weeks. And it is a safe investment. Bank FDs are a secure mode of investment, giving decent and periodic returns. In fact, in case you opt for the cumulative option, the yield is even higher.
You just need to factor in the tax part. The interest earned on a FD is subject to tax. You have to pay the applicable tax on in. So, on a FD giving an interest of 10 percent, for an investor in the 20 percent tax bracket, the effective rate of interest is eight percent. Still, it is a good bet. In fact, the returns on these fixed rate instruments is much better than the stock market's returns right now, which is variable, uncertain and prone to risks. An investor seeking fixed income security can lock into a FD. You can get a secured interest income for up to five years. Most banks offer FDs up to five years. Without any risk or uncertainty, you can plan your cash flows.
The returns from the stock markets may be high, but they come with a risk. Moreover, in times of need, you may not be able to dispose off your stocks, if the markets are down at that point in time. On the contrary, in case of an urgent need, you can prematurely cash your FD and get back the principle plus applicable interest.
The Reserve Bank of India (RBI) increased the key policy rates by 50 basis points, leading the repo and reverse repo rates to eight percent and seven percent respectively. With this increase in interest rates, the impact may be felt immediately. The quantum of rate increase will be decided in the respective asset-liability committee meetings of banks. The increase could range between 25 basis points and 50 basis points. In the immediate term, the rates on short-term deposits deposits with a maturity period ranging from one week up to one year - will increase. Longer tenure deposits may also follow suit. There is more competition for short-term funds from banks and mutual funds. So, the interest rates will go up sooner in this segment.
Before deciding to break up your existing FDs and go for ones with higher interest rates, you should make a calculation of the returns and check whether it is beneficial or not. Banks now levy a one percent penalty on premature encashment of a FD. Also, the interest rate applicable is the one that is applicable for the shorter tenure and not the original rate of interest you signed up for.
How It Works?
HERE is a simple case study that shows you how it works when you break up an existing FD for another one at a higher rate.
FD amount: Rs 10,000 Term:
One year Interest rate: Seven percent
If you decide to break this after four months:
Interest rate for four months: Five percent You earn (5-1) four percent for four months: Rs 133 Amount reinvested: Rs 10,133 at eight percent Interest earned for the remaining eight months: Rs 540 Total interest earned: Rs 673 (Rs 540 plus Rs 133) Therefore, effective interest: 6.73 percent
In this case, it is lesser than the original interest rate of seven percent.
If you decide to break this after one month:
Interest rate for one month: Four percent You earn (4-1) three percent for one month: Rs 25 Amount reinvested: Rs 10,025 at eight percent Interest earned for the remaining eight months: Rs 735 Total interest earned: Rs 760 (Rs 735 plus Rs 25) Therefore, effective interest: 7.6 percent
In this case, it is higher than the original interest rate of seven percent.
So, you need to compare the costs and returns before deciding on breaking a FD and reinvesting.
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| ULIP Review: ICICI Prudential Health Saver Posted: 18 Aug 2011 02:44 AM PDT
Product Details
ICICI Pru Health Saver is a unit-linked health insurance plan (ULHP). The scheme covers individuals and has a family cover option. It provides comprehensive coverage via reimbursement of hospitalisation charges as well as lump sum payment in case of critical illnesses. The annual hospitalisation limit is 2-10 lakh. The policy premium net of charges is allocated to create a unit linked fund, 'Health Saving', which covers miscellaneous healthcare expenses. ICICI offers seven investment options for building the Health Saving fund.
Unique Feature
Unlike other ULHPs, Health Saver provides a noclaim bonus of 5% of the annual limit for every claim-free year up to a maximum of 25%. The policy also includes a free health check-up once every two years after the first year.
For Existing Customers
Stay invested as this plan offers a no-claim bonus which peers in the ULHP category do not. The scheme's investment options have generated outstanding returns, offsetting the high cost structure. Investors may switch to Multiplier or Balancer funds for maximum returns.
For Those Looking to Invest
The scheme is a good buy. But investors should always check out the list of network hospitals before buying any kind of health insurance. We recommend that you pay additional premium to build an adequate Health Saving fund. One may weigh Health Saver against other ULHP plans like LIC Health Protection and Birla Saral Health.
Our View
It is recommended that one should buy health insurance from a general insurer as their reimbursement is said to be much faster. ICICI Health Saver, a life insurance product, also offers similar features but its cost structure is relatively high. Another drawback is that the Health Saving fund can be claimed only after three completed years and is subject to limitations.  |
| Mutual Fund Review: LIC Nomura MF Liquid Fund Posted: 18 Aug 2011 01:57 AM PDT Objective:
An open ended scheme which seeks to generate reasonable returns with low risk and high liquidity through judicious mix of investment in money market instruments and quality debt instruments.
Liquidity:
On an ongoing basis units for sale and repurchases will be available on all business days after 4 days from the closure of initial offer period.
Choice Of Options:
(A) Dividend Reinvestment
(B) Growth Options.
Flexibility:
Unit holders will have the flexibility to switch among the schemes and options offered by the LICMF.  |
| How to get Loan against Gold Jewellery? Posted: 17 Aug 2011 10:54 PM PDT
With the latest policy rate hike by the Reserve Bank of India, interest rates across loan categories have started shooting upwards. What's more, the central bank has hinted that in the backdrop of stubborn inflation, the possibility of yet another rate hike cannot be ruled out.
For the borrowers, this means that the already-expensive loans could get costlier in the coming days. However, those who cannot postpone their borrowing requirements till the interest rate cycle takes a turn for the better can consider alternative avenues to fulfil their funding needs. Loan against gold jewellery, for instance.
One of the most commonly owned asset in the country, gold jewellery can come in handy during times like these.
Increasingly, Indian borrowers are willing to let go of the resistance to pledging their gold jewellery. Add to this the soaring prices of gold, which has pushed up the eligible loan amount, and you get an extremely handy, liquid and reasonably-priced source of borrowing.
It is one of the cheapest borrowing avenues available today. Banks and NBFCs make advances against gold ornaments at a rate of 12% to 15%.
In contrast, personal loans could carry an interest rate as high as 25% in some cases, depending on your profile and the loan amount required.
The process of disbursal is comparatively quick and smooth, with lenders promising approval in five minutes to an hour. The processing fee, too, is low at 0% to 0.5%.
Also, the borrowers are not required to specify the purpose of borrowing. However, the loan will not be sanctioned if it is being taken to fund speculative activities.
Banks like HDFC offer loans of up to . 10 lakh while non-banking financial companies (NBFCs) like Mannapuram Finance and Muthoot Finance extend even up to . 1 crore.
The prospective borrower has to furnish proofs of identity (passport copy/voters ID card/driving licence), address (ration card/telephone or electricity bill) and signature (passport copy/banker's verification/cheque, etc).
As these loans are generally meant for short-term needs, the repayment tenure is typically between six and 12 months.
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| Product Review: IDBI Federal Life Term Plan for Senior Citizens Posted: 17 Aug 2011 10:17 PM PDT
The fundamental objective of life insurance is to replace the policyholder's income and provide financially for dependents in the event of his/her death. Therefore, life insurance is recommended for individuals with income and dependents. Typically, policies have a tenure of up to 35 years; if the insured buys the policy at the age of 25, it will offer a cover till he/she retires, post which there would be no income to be replaced.
Now, IDBI Federal Life Insurance has launched a term plan, the Seniors Insurance Plan, catering only to those aged over 50. The maximum age at entry set by the insurer is 85. The company promises to extend the cover without making the proposer go through any medical tests.
POLICY TERM: The maximum tenure under the plan can extend up to the policyholder's death; the premium paying term is till the insured turns 90. The policy can be surrendered after three policy years.
SUM ASSURED: The maximum cover offered under the policy is . 5 lakh. It kicks in after two years from the date of commencement. In case of the insured's demise within two years of buying the policy, 125% of the total premium paid will be disbursed to the dependents.
PREMIUM: For a 50-year-old male seeking a cover of . 5 lakh, the annual premium would be just over . 20,000. If you buy the plan at 85, the premium amount will go up to . 2,13,890 for the same sum assured.
SUITABILITY: The insurer is promoting the product as one that will take care of the insured's spouse upon his death. Some financial planners point out that most individuals fulfil their financial responsibilities before retirement (by the time they turn 60) and, hence, there is no income to be replaced by the cover post this period. Even if the retirement age were to be stretched to 70, they can look at a term policy with a 10-to 15-year tenure. A 50-year-old insuranceseeker can obtain a . 10-lakh cover with a 15-year tenure under a simple term plan at a cost (premium) of about . 6,000.
WHY GO FOR IT: Earning individuals who have never purchased life insurance but have dependents can look at this policy.
WHY YOU SHOULD NOT: Instead of policies with whole-of-life terms, one can look at regular term policies with a 10- to 15-year tenures as they would charge lower premiums.
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| Companies FDs offer higher rate, but bank Fixed Deposits safer Posted: 17 Aug 2011 09:07 PM PDT TERM deposits are a very common form of investment for individuals as well as corporate investors. It is free from market volatility risk because the rate of interest is contractual. Hence, the only variables are rate of interest and credit risk. Obviously, the higher the credit risk, the higher would be the return on the deposit. The investor has to make a choice, whether to settle for a relatively lower rate of interest with relatively higher safety or a marginally higher return on the investment with a higher risk perception. Let us then look at the degree of safety on deposits with banks and companies.
With banks, more so with nationalised banks, the perceived safety level is of a very high degree due to the nature of ownership of the institution and track record.
However, technically, there is no guarantee on deposits. There is a Deposit Insurance and Credit Guarantee Corporation (DICGC) Act, under which a bank can take insurance cover for deposits. It is up to Rs 100,000, which means even if a bank takes cover for deposits under the DICGC Act, deposits higher than Rs 100,000 are not guaranteed. However, there is an implied moral responsibility of the government on banks regulated by the RBI, which makes these deposits safe. There have been instances where a bank was in trouble and RBI stepped in and merged the troubled bank with a stronger bank so that all depositors' moneys were safe. This bailout is not just applicable for nationalised banks but for private sector banks as well. There is a cash reserve ratio (CRR) that banks have to maintain with RBI, so that if there is a run on deposits, RBI will step in with cash. From this perspective, it is better to place deposits with scheduled commercial banks that are mentioned in RBI's schedule.
Deposits with companies do not have the moral support of RBI or government of India. There is a provision in the Companies Act (Section 58A) that states that a pre-condition for acceptance for deposits is that "the company is not in default in the payment of any deposit or part thereof and any interest thereupon in accordance with the terms and conditions of such deposit".
Section 58A also states that "Where a company has failed to repay any deposit . .
. the tribunal may direct, by order, the company to make repayment of such deposit". Section 58AA of Companies Act states that "Every company, which accepts deposits from small depositors, shall intimate to the tribunal any default made by it in repayment of any deposits". In addition, there is Companies (Acceptance of Deposits) Rules, 1975, which lays down the ground rules.
Investors should go by the credit rating of the company and track record in servicing deposits. Credit rating is not any guarantee, but the opinion of the rating agency on the debt-servicing ability of the company may be used as a proxy for the fundamental quality/cash flows of the company. On the parameter of flexibility of premature withdrawals, banks are marginally better because the penalty is somewhat lower. However, premature withdrawal should be the last option for a depositor's cash requirements and not be the guiding principle for making deposits. To summarise, banks offer a higher perceived level of safety on deposits and corporate de posits offer a marginally higher rate of interest to compensate for the relatively higher risk perception. As of now, banks are offering interest rates in the range of 8.25 per cent to 9 per cent for one-year deposits (additional interest for senior citizens), where as companies with credit rating of AA+ and above are offering interest rates in the range of 9.25 per cent to 10 per cent for one-year deposits (there may be additional interest for senior citizens). There is no major problem in availing of 1 per cent higher interest rate in a corporate deposit, if the investor so wishes, as long as it is a highly rated private company. For a company rated lower than AA+, the investor should look at whether the additional risk and additional return are reasonable. ----------------------------------------------------------------- Also, know how to buy mutual funds online: Invest in DSP BlackRock Mutual Funds Online Invest in Reliance Mutual Funds Online Invest in HDFC Mutual Funds Online Invest in Sundaram Mutual Funds Online Invest in Birla Sunlife Mutual Funds Online Invest in UTI Mutual Funds Online Invest in SBI Mutual Funds Online Invest in Edelweiss Mutual Funds Online Invest in IDFC Mutual Funds Online  |
| HDFC Asset Management Company Posted: 17 Aug 2011 08:25 PM PDT HDFC Asset Management Company Ltd (AMC) was incorporated under the Companies Act, 1956, on December 10, 1999, and was approved to act as an Asset Management Company for the HDFC Mutual Fund by SEBI vide its letter dated July 3, 2000. Schemes Equity Funds HDFC Growth FundObjective
The primary investment objective of the Scheme is to generate long term capital appreciation from a portfolio that is invested predominantly in equity and equity related instruments.
Option/Plan
Dividend Plan,Growth Plan. The Dividend Plan offers Dividend Payout and Reinvestment Facility.
Entry Load (as a % of the Applicable NAV)
In respect of each purchase / switch-in of Units less than Rs. 5 crore in value, an Entry Load of 2.25% is payable.
In respect of each purchase / switch-in of Units equal to or greater than Rs.5 crore in value, no Entry Load is payable.
Exit Load (as a % of the Applicable NAV)
In respect of each purchase / switch-in of Units less than Rs. 5 Crore in value, an Exit Load of 1% is payable if units are redeemed / switched-out within 1 year from the date of allotment.
In respect of each purchase / switch-in of Units equal to or greater than Rs. 5 Crore in value, no Exit Load is payable. HDFC Top 200 Fund Objective
To generate long term capital appreciation from a portfolio of equity and equity-linked instruments primarily drawn from the companies in BSE 200 index.
Option/Plan
Dividend Plan,Growth Plan. The Dividend Plan offers Dividend Payout and Reinvestment Facility.
Entry Load (as a % of the Applicable NAV)
In respect of each purchase / switch-in of units less than Rs. 5 crore in value, an Entry Load of 2.25% is payable.
In respect of each purchase / switch-in of Units equal to or greater than Rs. 5 crore in value, no Entry Load is payable.
Exit Load (as a % of the Applicable NAV)
In respect of each purchase / switch-in of Units less than Rs. 5 Crore in value, an Exit Load of 1% is payable if units are redeemed / switched-out within 1 year from the date of allotment.
In respect of each purchase / switch-in of Units equal to or greater than Rs. 5 Crore in value, no Exit Load is payable.
Minimum Application Amount
For new investors :Rs.5000 and any amount thereafter.
For existing investors : Rs. 1000 and any amount thereafter. HDFC Core and Satellite Fund Objective
The primary objective of the Scheme is to generate capital appreciation through equity investment in companies whose shares are quoting at prices below their true value.
Option/Plan
Growth Plan,Dividend Plan. The Dividend Plan offers Dividend Payout and Reinvestment Facility.
Entry Load (as a % of the Applicable NAV)
In respect of each purchase / switch-in of units less than Rs. 5 crore in value, an Entry Load of 2.25% is payable.
In respect of each purchase / switch-in of Units equal to or greater than Rs. 5 crore in value, no Entry Load is payable.
Exit Load (as a % of the Applicable NAV)
In respect of each purchase / switch-in of Units less than Rs. 5 Crore in value, an Exit Load of 1% is payable if units are redeemed / switched-out within 1 year from the date of allotment.
In respect of each purchase / switch-in of Units equal to or greater than Rs. 5 Crore in value, no Exit Load is payable.
Minimum Application Amount
For new investors :Rs.5000 and any amount thereafter.
For existing investors : Rs. 1000 and any amount thereafter. HDFC Index Fund - Sensex Plan Objective
To generate returns that are commensurate with the performance of the SENSEX, subject to tracking errors.
Option/Plan
Growth Plan,Dividend Plan. The Dividend Plan offers Dividend Payout and Reinvestment Facility.
Entry Load (as a % of the Applicable NAV)
In respect of each purchase / switch-in of units less than Rs. 5 crore in value, an Entry Load of 2.25% is payable.
In respect of each purchase / switch-in of Units equal to or greater than Rs. 5 crore in value, no Entry Load is payable.
Exit Load (as a % of the Applicable NAV)
In respect of each purchase / switch-in of Units less than Rs. 5 Crore in value, an Exit Load of 1% is payable if units are redeemed / switched-out within 1 year from the date of allotment.
In respect of each purchase / switch-in of Units equal to or greater than Rs. 5 Crore in value, no Exit Load is payable.
Minimum Application Amount
For new investors :Rs.5000 and any amount thereafter. HDFC Index Fund - Sensex Plus Plan Objective
To invest 80 to 90% of the net assets of the Plan in companies whose securities are included in SENSEX and between 10% & 20% of the net assets in companies whose securities are not included in the SENSEX.
Option/Plan
Growth Plan,Dividend Plan. The Dividend Plan offers Dividend Payout and Reinvestment Facility.
Exit Load (as a % of the Applicable NAV)
In respect of each purchase/switch-in of Units upto and including Rs. 5 lakh in value, an Exit Load of 1.00% is payable if Units are redeemed/ switched-out within one year from the date of allotment.
In respect of each purchase / switch-in of Units greater than Rs. 5 lakh in value, no Exit Load is payable.
Minimum Application Amount
For new investors :Rs.5000 and any amount thereafter.
For existing investors : Rs. 1000 and any amount thereafter. HDFC Equity Fund Objective
To achieve capital appreciation.
Option/Plan
Growth Plan,Dividend Plan. The Dividend Plan offers Dividend Payout and Reinvestment Facility.
Entry Load (as a % of the Applicable NAV)
In respect of each purchase / switch-in of units less than Rs. 5 crore in value, an Entry Load of 2.25% is payable.
In respect of each purchase / switch-in of Units equal to or greater than Rs. 5 crore in value, no Entry Load is payable.
Exit Load (as a % of the Applicable NAV)
In respect of each purchase / switch-in of Units less than Rs. 5 Crore in value, an Exit Load of 1% is payable if units are redeemed / switched-out within 1 year from the date of allotment.
In respect of each purchase / switch-in of Units equal to or greater than Rs. 5 Crore in value, no Exit Load is payable.
Minimum Application Amount
For new investors :Rs.5000 and any amount. HDFC Long Term Advantage Fund (ELSS) Objective
To generate long term capital appreciation from a portfolio that is invested predominantly in equity and equity related instruments.
Option/Plan
Growth Plan,Dividend Plan. The Dividend Plan offers Dividend Payout and Reinvestment Facility.
Entry Load (as a % of the Applicable NAV)
In respect of each purchase / switch-in of units less than Rs. 5 crore in value, an Entry Load of 2.25% is payable.
In respect of each purchase / switch-in of Units equal to or greater than Rs. 5 crore in value, no Entry Load is payable.
Lock-In-Period
3 years from the date of allotment of the respective Units.
Minimum Application Amount.
For new & existing investors :Rs.500 and in multiples thereafter. HDFC Long Term Equity Fund Objective
To achieve long term capital appreciation.
Option/Plan
Growth Plan,Dividend Plan. The Dividend Plan offers Dividend Payout and Reinvestment Facility.
Exit Load (as a % of the Applicable NAV)
Redemption / Switch-out from the Date of Allotment :
Upto 12 months 4%
After 12 months upto 24 months 3%
After 24 months upto 36 months 2%
After 36 months upto 48 months 1%
After 48 months upto 54 months 0.5%
After 54 months upto Maturity Nil HDFC Capital Builder Fund Objective
To achieve capital appreciation in the long term.
Option/Plan
Growth Plan,Dividend Plan. The Dividend Plan offers Dividend Payout and Reinvestment Facility.
Entry Load (as a % of the Applicable NAV)
In respect of each purchase / switch-in of units less than Rs. 5 crore in value, an Entry Load of 2.25% is payable.
In respect of each purchase / switch-in of Units equal to or greater than Rs. 5 crore in value, no Entry Load is payable.
Exit Load (as a % of the Applicable NAV)
In respect of each purchase / switch-in of Units less than Rs. 5 Crore in value, an Exit Load of 1% is payable if units are redeemed / switched-out within 1 year from the date of allotment.
In respect of each purchase / switch-in of Units equal to or greater than Rs. 5 Crore in value, no Exit Load is payable.
Minimum Application Amount
For new investors :Rs.5000 and any amount thereafter.
For existing investors : Rs. 1000 and any amount thereafter. HDFC Premier Multi-Cap Objective
To generate capital appreciation in the long term through equity investments by investing in a diversified portfolio of Mid Cap and Large Cap `blue chip` companies.
Option/Plan
Growth Plan,Dividend Plan. The Dividend Plan offers Dividend Payout and Reinvestment Facility.
Entry Load (as a % of the Applicable NAV)
In respect of each purchase / switch-in of units less than Rs. 5 crore in value, an Entry Load of 2.25% is payable.
In respect of each purchase / switch-in of Units equal to or greater than Rs. 5 crore in value, no Entry Load is payable.
Exit Load (as a % of the Applicable NAV)
In respect of each purchase / switch-in of Units less than Rs. 5 Crore in value, an Exit Load of 1% is payable if units are redeemed / switched-out within 1 year from the date of allotment.
In respect of each purchase / switch-in of Units equal to or greater than Rs. 5 Crore in value, no Exit Load is payable.
Minimum Application Amount
For new investors :Rs.5000 and any amount thereafter.
For existing investors : Rs. 1000 and any amount thereafter. HDFC Index Fund - Nifty Plan Objective
To generate returns that are commensurate with the performance of the Nifty, subject to tracking errors.
Option/Plan
Growth Plan,Dividend Plan. The Dividend Plan offers Dividend Payout and Reinvestment Facility.
Exit Load(as a % of the Applicable NAV)
In respect of each purchase / switch-in of Units less than Rs. 5 Crore in value, an Exit Load of 1% is payable if units are redeemed / switched-out within 1 year from the date of allotment.
In respect of each purchase / switch-in of Units equal to or greater than Rs. 5 Crore in value, no Exit Load is payable.
Minimum Application Amount
For new investors :Rs.5000 and any amount thereafter.
For existing investors : Rs. 1000 and any amount thereafter. Other Schemes Are: • HDFC Arbitrage Fund
• HDFC Prudence Fund
• HDFC TaxSaver (ELSS)
• HDFC Mid-Cap Opportunites Fund HDFC Children´s Gift Fund - Investment Plan Objective
To generate long term capital appreciation
Option/Plan
Growth Plan. (Equity Oriented)
Entry Load (as a % of the Applicable NAV)
Application routed through any distributor/agent/broker : 2.25%
Application not routed through any distributor/agent/broker : Nil
No Entry Load shall be levied on bonus units and units allotted on dividend reinvestment.
Exit Load (as a % of the Applicable NAV)
For Units subject to Lock-in Period: NIL
For Units not subject to Lock-in Period :
3% if the Units are redeemed / switched-out within one year from the date of allotment,
2% if the Units are redeemed / switched-out between the first and second year of the date of allotment,
1% if Units are redeemed /switched-out between the second and third year of the date of allotment,
Nil if the Units are redeemed / switched -out after third year from the date of allotment.
Minimum Application Amount
For new investors :Rs.5000 and any amount thereafter.
For existing investors : Rs. 1000 and any amount thereafter. HDFC Children´s Gift Fund - Savings Plan Objective
To generate long term capital appreciation
Option/Plan
Growth Plan. (Equity Oriented)
Entry Load (as a % of the Applicable NAV)
Application routed through any distributor/agent/broker : 1.25%
Application not routed through any distributor/agent/broker : Nil
No Entry Load shall be levied on bonus units and units allotted on dividend reinvestment.
Exit Load (as a % of the Applicable NAV)
For Units subject to Lock-in Period: NIL
For Units not subject to Lock-in Period :
3% if the Units are redeemed / switched-out within one year from the date of allotment,
2% if the Units are redeemed / switched-out between the first and second year of the date of allotment,
1% if Units are redeemed /switched-out between the second and third year of the date of allotment,
Nil if the Units are redeemed / switched -out after third year from the date of allotment.
Minimum Application Amount
For new investors :Rs.5000 and any amount thereafter.
For existing investors : Rs. 1000 and any amount thereafter. Liquid Funds HDFC Liquid Fund Objective
To enhance income consistent with a high level of liquidity, through a judicious portfolio mix comprising of money market and debt instruments.
Option/Plan
Dividend Plan,Growth Plan. The Dividend Plan offers Daily Dividend option (reinvestment facility only); Weekly and Monthly Dividend option (with payout and Reinvestment facility).
Minimum Application Amount
Growth Option - For new/ existing investors :Rs.10000 and any amount thereafter.
Dividend Option - For new/ existing investors : Rs. 100000 and any amount thereafter. HDFC Liquid Fund Premium Plan Objective
To enhance income consistent with a high level of liquidity, through a judicious portfolio mix comprising of money market and debt instruments.
Option/Plan
Dividend Plan,Growth Plan. The Dividend Plan offers Daily Dividend option (reinvestment facility only); Weekly and Monthly Dividend option (with payout and Reinvestment facility).
Minimum Application Amount
HLF – Premium Plan (for new investors) : Rs.5,00,00,000 and any amount thereafter for opening an account/ folio (Under each Option).
(For existing investors) : Re.1 and any amount thereafter under each Option. HDFC Cash Management Fund - Call Plan Objective
To generate optimal returns while maintaining safety and high liquidity.
Option/Plan
Dividend Plan, Growth Plan. The Dividend Plan offers Daily Dividend option (reinvestment facility only); Weekly and Monthly Dividend option (with payout and Reinvestment facility).
Minimum Application Amount
For new/ existing investors :Rs.100000 and any amount thereafter (Under each Option). HDFC Cash Management Fund - Savings Plan Objective
To generate optimal returns while maintaining safety and high liquidity.
Option/Plan
Growth Option, Daily dividend option (reinvestment facility only) and Weekly dividend option (with payout and Reinvestment facility).(Effective from Jun 1st, 2007 - Dividend Payout facility is being introduced under the Weekly Dividend Option).
Minimum Application Amount
Growth Option - For New/ existing investors - Rs.10000 and any amount thereafter.
Daily Dividend and Weekly Dividend Option - For New/ existing investors - Rs. 100000 and any amount thereafter. Debt/Income Funds HDFC MF Monthly Income Plan - Short Term Plan Objective
To regular returns through investment primarily in Debt and Money Market Instruments. The secondary objective of the Scheme is to generate long-term capital appreciation by investing a portion of the Scheme's assets in equity and equity related instruments
Option/Plan
Growth Option,Quarterly Dividend Option,Monthly Dividend Option. The Dividend Option offers Dividend Payout and Reinvestment Facility.
Exit Load (as a % of the Applicable NAV)
In respect of each purchase / switch-in of Units upto and including Rs. 10 lakhs in value, an Exit Load of 0.50% is payable if Units are redeemed / switched-out within 6 months from the date of allotment.
In respect of each purchase / switch-in of Units greater than Rs. 10 lakhs in value, an Exit Load of 0.25% is payable if Units are redeemed / switched-out within 3 months from the date of allotment.
Minimum Application Amount
For new investors : (Growth & Quarterly Dividend Option) – Rs.5000 and any amount thereafter under each option.
(Monthly Dividend Option) . Rs. 25000 and any amount thereafter.
For existing investors : Rs. 1000 and any amount thereafter. HDFC Multiple Yield Fund Objective
To regular returns through investment primarily in Debt and Money Market Instruments. The secondary objective of the Scheme is to generate long-term capital appreciation by investing a portion of the Scheme's assets in equity and equity related instruments.
Option/Plan
Growth Option, Quarterly Dividend Option, Monthly Dividend Option. The Dividend Option offers Dividend Payout and Reinvestment Facility.
Exit Load(as a % of the Applicable NAV)
In respect of each purchase / switch-in of Units upto and including Rs. 10 lakhs in value, an Exit Load of 0.50% is payable if Units are redeemed / switched-out within 6 months from the date of allotment.
In respect of each purchase / switch-in of Units greater than Rs. 10 lakhs in value, an Exit Load of 0.25% is payable if Units are redeemed / switched-out within 3 months from the date of allotment.
Minimum Application Amount
For new investors : (Growth & Quarterly Dividend Option) – Rs.5000 and any amount thereafter under each option.
(Monthly Dividend Option) . Rs. 25000 and any amount thereafter.
For existing investors : Rs. 1000 and any amount thereafter.  |
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