HDFC Infrastructure Fund
To seek long-term capital appreciation by investing predominantly in equity and equity related securities of companies engaged in or expected to benefit from the growth and development of infrastructure.
Basic Scheme Information
|Nature of Scheme
||Open-ended Equity Scheme w.e.f. March 10, 2011|
||March 10, 2008 |
Existing Plan : Growth Option, Dividend Option. The Dividend Option offers Dividend Payout and Reinvestment Facility
Direct Plan (w.e.f. 01 Jan 2013) : Dividend Option, Growth Option. The Dividend Option offers Dividend Payout and Reinvestment Facility.
(For Lumpsum Purchases and investments through SIP/STP)
Unfront commission shall be paid directly by the investor to the ARN Holder (AMFI registered Distributor) based on the investors' assessment of various factors including the service rendered by the ARN Holder.
(as a % of the Applicable NAV)
(Including for investments through Systematic Investment Plan (SIP)/ Systematic Transfer Plan (STP))
- In respect of each purchase /switch-in of units, an Exit Load of 1.00% is payable if Units areredeemed / switched-out within 1 year from the date of allotment.
- No Exit Load is payable if Units are redeemed / switched-out after 1 year from the date of allotment.
Specified Redemption Period
|Minimum Application Amount
(Other than Systematic Investment Plan (SIP)/ Systematic Transfer Plan (STP))
|Rs. 5,000 and any amount thereafter under each option.|
Additional Purchase: Rs. 1,000 and any amount thereafter under each option.
|Net Asset Value Periodicity
||Every Business Day. |
||Within 10 working days. |
(As per present Laws)
|Please click for details|
|Current Expense Ratio (#)
(Effective Date 01st October 2012)
On the first 100 crores daily net assets 2.50%
On the next 300 crores daily net assets 2.25%
On the next 300 crores daily net assets 2.00%
On the balance of the net assets 1.75%
In addition to the above a charge of 20 bps on the daily net assets plus a proportionate charge in respect sales beyond T-15 cities subject to maximum of 30 bps on daily net assets.
Excluding Service Tax on Investment Management Fees, if any.
Direct Plan shall have a lower expense ratio by 0.48%.
(#) Any change in the expense ratio will be updated within two working days.
|Growth Option||09 Dec 2013||9.5300|
|Dividend Option||09 Dec 2013||9.5300|
|Direct Plan - Dividend Option||09 Dec 2013||9.5740|
|Direct Plan - Growth Option||09 Dec 2013||9.5740|
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|
Equity and Equity Related Instruments of infrastructure / infrastructure related companies
||Medium to High|
Equity and Equity Related Instruments of companies other than mentioned above
||Medium to High|
Debt Securities and Money Market Instruments* and Fixed Income Derivative ;
||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.
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:
- Banking and Financial Services
- Cement and Cement Products
- Construction and related industries
- Electrical and Electronic Components
- Housing and related industries
- Industrial Capital Goods
- Industrial Products
- Oil & Gas and allied industries
- Petroleum and related industries
- Power and Power Equipment
- 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.
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.
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.
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.
Mr. Prashant Jain
Mr Srinivas Rao Ravuri
Portfolios - Holdings
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