Diversify Your Investment Portfolio For Getting Advantage of HDFC Mutual Fund Schemes
Diversification is the one basic criterion which prompts investors for getting interested in Mutual Funds. Simply put, diversification means picking your best fund across several funds for your investment. Definitely, you could take a big hit during favourable times by investing only in one stock or sector. By investing in a different combination of asset categories-stocks, bonds, real estate and cash to name a few-chances are getting less likely to be hurt if one performs poorly.
But what if when you have an existing portfolio? No worries. Whether you are an existing investor or a new one, diversification rule is common for all. And if you are looking to expand your investment portfolio for adding other mutual funds of another fund house, then you should consider HDFC Mutual Fund schemes in your kitty.
HDFC Mutual Fund was established primarily as a trust under Housing Development Finance Corporation along with Standard Life Investments Limited as its sponsor. Later on, HDFC Trustee Company Limited is appointed to be as its trustee. Over a period of time, HDFC Mutual Funds has outstretched itself in serving all types of investors across 12 different types of funds. Let's take a look at HDFC Mutual Fund schemes in its offering:
HDFC Mutual Fund Schemes
Equity/Growth Fund : Equity funds are designed to invest directly in stock markets. These funds have different options in order to fulfill the long-term or short-term investment requirement of the investors.
Debt/Income Fund : Debt funds are designed to invest in bonds(short and long term), money market instruments and floating rate debts. These funds aim for wealth creation purposes by assuming low to moderate risk levels.
Liquid Funds: Liquid funds are those funds which have a maturity period ranging upto 91 days. However, the assets of this scheme don't find its shelter for a longer duration as the funds don't have a lock-in period. Investors can employ their funds without exit loads, also these funds deliver high-liquidity.
Children's Gift Fund: Investing in children's gift fund ideally prepare the parents to fulfill the growing demands of their children. This fund aims to provide them the capital appreciation over a long time period which can help them to satiate the demands of their growing children.
Retirement Savings Fund: Pensioners can look to invest in this type of fund as it provides income until the amount gets redeemed for holding the units after the age of 60 years. This fund is made up of the mixed proportion of securities such as equity, equity related instruments and in debt or money market instruments.
Fixed Maturity Plan: These funds provide safe protection to investments made by investors as these funds invest primarily in government securities and debt/money market instruments. However, they are close-ended schemes which offer low-risks to investors.
Exchange Traded Funds: These funds provide returns closely to the performance of the gold subject to tracking error. It permits the investor to buy and sell such units throughout the day on an exchange.
Dual Advantage Fund: This scheme invests in a mixed composition of debt and money market instruments which have a maturity period on or before the maturity date of the scheme. The scheme fosters capital appreciation by investing in a portfolio of equity and equity-related securities.
Capital Protection Oriented Schemes: This scheme targets to generate income by investing in debt markets. The securities parked in this scheme have a fixed maturity and provide an environment of low-risk investment.
Fund of Fund Schemes: This fund promotes capital appreciation by managing the asset allocation between stipulated equity and debt instruments of HDFC Mutual Fund. No matter they are open-ended schemes but they carry high-risk potential which means that they can generate higher returns.
Annual Interval Fund-Series 1 : These funds invest in debt and money market instruments to generate returns, also in government securities whose maturity period lies on or before the beginning of subsequent Specified Transaction Period.
Cancer Cure Fund : Investors opting for this fund have a choice to contribute 50% to 100% of their dividends earned towards the treatment of cancer patients. After the three year time period, the principal is returned back to the investor.Cancer Cure Fund is set up by HDFC Mutual Fund with an objective to aid financial help to patients whose family annual income was less than ₹1 lakh.
Disclaimer : Mutual Fund Investments are subject to market risks, read all scheme related documents carefully before investing.