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HDFC Infrastructure Fund
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Investment Objective
To seek long-term capital appreciation by investing predominantly in equity and equity related securities of companies engaged in or expected to benefit from growth and development of infrastructure.
Basic Scheme Information
| Nature of Scheme |
Close Ended Equity Scheme with a maturity period of 3 years from the date of allotment with automatic conversion into an open-ended scheme upon maturity of the Scheme. |
| Inception Date |
March 10, 2008 |
| Option/Plan |
Dividend Option, Growth Option. Dividend Option currently offers with payout facility only |
Entry Load
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NIL |
Exit Load
(as a % of the Applicable NAV)
(Other than Systematic Investment Plan (SIP)/ Systematic Transfer Plan (STP))
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Nil.
- Initial Issue Expenses not exceeding 6.00% incurred by the Mutual Fund will be charged to the Scheme and will be amortised over a period of three years.
- Actual expenses incurred in respect of Initial Issue Expenses in excess of 6% as indicated above shall be borne by the AMC / the Trustee Company.
- Pursuant to SEBI Circular Ref. SEBI / MFD / CIR No. 1/64057/06 dated April 4, 2006, the balance proportionate unamortised issue expenses will be recovered from the Unitholder if an Unitholder exits the scheme before the amortisation of NFO expenses is completed.
No Exit Load shall be levied on bonus units and units allotted on dividend reinvestment.
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Specified Redemption Period |
The Scheme will offer for redemption/switch-out of units on an ongoing basis during the Specified Redemption Period. Presently, the Specified Redemption Period is the first two Business Days of each calendar month. |
Minimum Application Amount
(Other than Systematic Investment Plan (SIP)/ Systematic Transfer Plan (STP))
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Currently no purchases/ switch-ins are allowed into this scheme. |
| Lock-In-Period |
Nil. |
| Net Asset Value Periodicity |
Every Business Day. |
| Redemption Proceeds |
Within 10 working days. |
Tax Benefits
(As per present Laws) |
Please click for details |
Current Expense Ratio (#)
(Effective Date 22nd May 2009) |
On the first 100 crores average weekly net assets 2.50%
On the next 300 crores average weekly net assets 2.25%
On the next 300 crores average weekly net assets 2.00%
On the balance of the assets 1.75% |
| (#) Any change in the expense ratio will be updated within two working days. |
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Plan Name |
NAV Date |
NAV Amount |
| Growth Option | 29 Jul 2010 | 12.1810 | | Dividend Option | 29 Jul 2010 | 12.1810 |
Investment Pattern
The asset allocation under the respective Plans will be as follows:
| Type of Instruments |
Minimum Allocation (% of Net Assets) |
Maximum Allocation(% of Net Assets) |
Risk Profile of the Instrument |
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Equity and Equity Related Instruments of infrastructure / infrastructure related companies |
65% |
100% |
Medium to High |
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Equity and Equity Related Instruments of companies other than mentioned above |
0% |
35% |
Medium to High |
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Debt Securities and Money Market Instruments* and Fixed Income Derivative ; |
0% |
35% |
Low to Medium |
* Investments in securitised debt shall not normally exceed 30% of the net assets of the Scheme. The Scheme may seek investment opportunity in Foreign Securities (max. 35% of net assets). The Scheme may take derivatives position for hedging, portfolio balancing or to undertake any other strategy as permitted under SEBI Regulations from time to time (max. 20% of the net assets) based on the opportunities available subject to SEBI Regulations.
Investment Strategy
The Scheme shall invest predominantly in equity and equity related securities of companies engaged in or expected to benefit from the growth and development of infrastructure.
The Scheme shall invest in the following indicative list of sectors/industries:
- Airports
- Banking and Financial Services
- Cement and Cement Products
- Construction and related industries
- Electrical and Electronic Components
- Energy
- Engineering
- Metals/Mining/Minerals
- Housing and related industries
- Industrial Capital Goods
- Industrial Products
- Oil & Gas and allied industries
- Petroleum and related industries
- Ports
- Power and Power Equipment
- Telecom
- Urban Infrastructure including Transportation, Water, etc.
The Scheme shall invest across the above-mentioned sectors or other areas of infrastructure as identified by the Fund Manager.
Please note that the above list is only indicative and not exhaustive and this could undergo changes based on the future reforms and developments. The Fund Manager may add such other sector/group of industries which broadly satisfy the category of services and infrastructure industries.
The scheme may also invest upto 35% of the fund in noninfrastructure related companies. The Scheme shall invest across all market capitalization.
The balance, if any, will be invested in Debt or Money Market Instruments and Fixed Income Derivative, including securitised debt.
Though every endeavor will be made to achieve the objectives of the Scheme, the AMC/Sponsors/Trustees do not guarantee that the investment objectives of the Scheme will be achieved. No guaranteed returns are being offered under the Scheme.
The Scheme may invest in other schemes managed by the AMC or in the schemes of any other mutual funds, provided it is in conformity with the investment objectives of the Scheme and in terms of the prevailing SEBI Regulations. As per the SEBI Regulations, no investment management fees will be charged for such investments and the aggregate inter scheme investment made by all the schemes of HDFC Mutual Fund or in the schemes of other mutual funds shall not exceed 5% of the net asset value of the HDFC Mutual Fund.
The Scheme may also invest in suitable investment avenues in overseas financial markets for the purpose of diversification, commensurate with the Scheme objectives and subject to necessary stipulations by SEBI / RBI. Towards this end, the Mutual Fund may also appoint overseas investment advisors and other service providers, as and when permissible under the regulations.
- Debt Investments
The Scheme will retain the flexibility to invest in the entire range of debt securities and money market instruments. These instruments are more specifically highlighted below: Debt securities (in the form of non-convertible debentures, bonds, secured premium notes, zero interest bonds, deep discount bonds, floating rate bond / notes, securitised debt, pass through certificates, asset backed securities, mortgage backed securities and any other domestic fixed income securities including structured obligations etc.) include, but are not limited to:
- Debt obligations of the Government of India, State and local Governments, Government Agencies and statutory bodies (which may or may not carry a state / central government guarantee),
- Securities that have been guaranteed by Government of India and State Governments,
- Securities issued by Corporate Entities (Public / Private sector undertakings),
- Securities issued by Public / Private sector banks and development financial institutions.
- Money Market Instruments include
- Commercial papers
- Commercial bills
- Treasury bills
- Government securities having an unexpired maturity upto one year
- Collaterlised Borrowing & Lending Obligation (CBLO)
- Certificate of deposit
- Usance bills
- Permitted securities under a repo / reverse repo agreement
- Any other like instruments as may be permitted by RBI / SEBI from time to time
Investments will be made through secondary market purchases, initial public offers, other public offers, placements and right offers (including renunciation). The securities could be listed, unlisted, privately placed, secured / unsecured, rated / unrated of any maturity.
The AMC retains the flexibility to invest across all the securities / instruments in debt and money market.
Investment in debt securities will usually be in instruments which have been assessed as .high investment grade. by at least one credit rating agency authorised to carry out such activity under the applicable regulations. Pursuant to SEBI Circular No. MFD/ CIR/9/120/2000 dated November 24, 2000, the AMC may constitute committee(s) to approve proposals for investments in unrated debt instruments. The AMC Board and the Trustee shall approve the detailed parameters for such investments. The details of such investments would be communicated by the AMC to the Trustee in their periodical reports. It would also be clearly mentioned in the reports, how the parameters have been complied with. However, in case any unrated debt security does not fall under the parameters, the prior approval of Board of AMC and Trustee shall be sought. Investment in debt instruments shall generally have a low risk profile and those in money market instruments shall have an even lower risk profile. The maturity profile of debt instruments will be selected in accordance with the AMC.s view regarding current market conditions, interest rate outlook and the stability of ratings.
RISK CONTROL
Investments made from the net assets of the Scheme would be in accordance with the investment objective of the Scheme and the provisions of the SEBI Regulations. The AMC will strive to achieve the investment objective by way of a judicious portfolio mix comprising of Debt Securities and Money Market Instruments and equity / equity related instruments. Every investment opportunity in Debt Securities and Money Market Instruments would be assessed with regard to credit risk, interest rate risk and liquidity risk.
Credit Risk
A detailed credit evaluation of each investment opportunity will be undertaken. The AMC will utilise ratings of recognised rating agencies as an input in the decision making process. Investments in Debt Securities and Money Market Instruments will usually be in instruments that have been assigned high investment grade ratings by a recognised rating agency. In line with SEBI Circular No. MFD/CIR/9/120/ 2000 dated November 24, 2000, the AMC may constitute committee(s) to approve proposals for investments in unrated instruments. The AMC Board and the Trustee shall approve the detailed parameters for such investments. The details of such investments would be communicated by the AMC to the Trustee in their periodical reports. It would also be clearly mentioned in the reports, how the parameters have been complied with. However, in case any security does not fall under the parameters, the prior approval of Board of AMC and Trustee shall be sought.
Interest Rate Risk
An interest rate scenario analysis would be performed on an on-going basis, considering the impact of the developments on the macro-economic front and the demand and supply of funds. Based on the above analysis, the AMC would manage the investments of the Scheme on a dynamic basis to exploit emerging opportunities in the investment universe and manage risks at all points in time.
Liquidity Risk
The AMC will attempt to reduce liquidity risk by investing in securities that would result in a staggered maturity profile of the portfolio, investment in structured securities that provide easy liquidity and securities that have reasonable secondary market activity. In the event of a requirement to liquidate all or a substantial part of these investments in a very short duration of time, the AMC may not be able to realize the full value of these securities to an adverse impact on the Net Asset Value of the Scheme. Please refer to clauses on "Right to Limit Redemption" on Page 55 and "Suspension of Sale / Redemption / Switching Options of the Units", on Page 56.
Fund Manager
Mr. Prashant Jain
Mr Srinivas Rao Ravuri
Returns
| HDFC Infrastructure Fund | (NAV as at evaluation date 30-June-2010, Rs. 11.786 Per unit) | | Date | Period | NAV Per Unit (Rs.) | Returns (%) ^ | Benchmark Returns (%) #
| | March 30, 2007 | Last 1188 days | N.A | N.A. | 11.02**
| | December 30, 2009 | Last Six months (182 days) | 10.971 | 7.43* | 2.64*
| | June 30, 2009 | Last 1 Year (365 days) | 8.62 | 36.73* | 27.41*
| | June 29, 2007 | Last 3 Years (1097 days) | N.A | N.A. | 6.82**
| | June 30, 2005 | Last 5 Years (1826 days) | N.A | N.A. | 18.31**
| | June 30, 2000 | Last 10 Years (3652 days) | N.A | N.A. | 15.2**
| | March 10, 2008 | Since Inception (842 days) | 10.000 | 7.38** | 5.26**
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* Absolute Returns ** Compounded Annualised Returns
# S&P CNX 500
^ Past performance may or may not be sustained in the future
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