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HDFC Multiple Yield Fund - Plan 2005
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Investment Objective
The objective of the Scheme is to generate positive returns over medium time frame with low risk of capital loss over medium time frame.
Basic Scheme Information
| Nature of Scheme |
Open Ended Income Scheme |
| Inception Date |
August 17, 2005 |
| Option/Plan |
Existing Plan : Dividend Plan,Growth Plan. The Dividend Plan offers Dividend Payout and Reinvestment Facility.
Direct Plans (w.e.f. 01 Jan 2013) : Dividend Option, Growth Option. The Dividend Option offers Dividend Payout and Reinvestment Facility. |
Entry Load
(For Lumpsum Purchases and investments through SIP/STP) |
NIL
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.
Please click here to go through the addendum. |
Exit Load
(as a % of the Applicable NAV) |
- In respect of each purchase / switchin of units, an Exit Load of 1.00% is payable if Units are redeemed / switched-out within 15 months from the date of allotment.
- No Exit Load is payable if Units are redeemed / switched-out after 15 months from the date of allotment.
- Introduction of Direct Plan - modification in the Exit Load provisions, click here to read
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Minimum Application Amount
(click here for SIP Details)
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For new investors : Rs.5000 and any amount thereafter.
For existing investors : Rs. 1000 and any amount thereafter.
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| Lock-In-Period |
Nil |
| Net Asset Value Periodicity |
Every Business Day. |
| Redemption Proceeds |
Normally dispatched within 3-4 Business days |
Tax Benefits
(As per present Laws) |
Please click for details |
Current Expense Ratio (#)
(Effective Date 3rd October 2012) |
1.77% |
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Excluding Service Tax on Investment Management Fees, if any.
Direct Plan shall have a lower expense ratio by 0.58%.
(#) Any change in the expense ratio will be updated within two working days. |
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Plan Name |
NAV Date |
NAV Amount |
| Dividend Plan | 22 May 2013 | 10.9124 | | Growth Plan | 22 May 2013 | 19.2935 | | Direct Plan - Dividend Option | 22 May 2013 | 10.9386 | | Direct Plan - Growth Option | 22 May 2013 | 19.3427 |
Investment Pattern
The following table provides the asset allocation of the Scheme`s portfolio.
| Sr.No. |
Type of Instruments |
Minimum Allocation
(% of Net Assets) |
Maximum Allocation of the
(% Of Net Assets) |
Risk Profile of the Instrument |
| 1 |
Fixed Income Securities (including securitised debt of upto 25% of net assets & Money Market instruments) |
80% |
95% |
Low to Medium |
| 2 |
Equities & Equity related instruments |
5% |
20% |
High |
Pending deployment of funds of the Scheme in securities in terms of the investment objective of the Scheme, the AMC may park the funds of the Scheme in short term deposits of scheduled commercial banks, subject to the guidelines issued by SEBI vide its circular dated April 16, 2007, as amended from time to time.
The Scheme may seek investment opportunity in the ADR / GDR / Foreign Equity and Debt Securities, in accordance with guidelines stipulated in this regard by SEBI and RBI from time to time. No investments shall be made in Foreign Securitised Debt. Under normal cricumstances, the Scheme shall not have an exposure of more than 25% of its net assets in foreign securities subject to regulatory limits.
The Scheme may use derivatives for hedging and portfolio balancing. The Scheme will have a maximum derivatives net position of 50% of the portfolio (i.e. net assets including cash).
The AMC shall adhere to the following limits should it engage in Stock Lending.
1. Not more than 25% of the net assets of the Scheme can generally be deployed in Stock Lending.
2. Not more than 5% of the net assets of the Scheme can generally be deployed in Stock Lending to any single counter party.
Investment Strategy
The net assets of the Scheme will be invested primarily in fixed income securities and balance in equity and equity related instruments.
This Scheme targets positive returns over medium time frame and aims to reduce the chances and extent of a capital depreciation over medium term holding period for the unit holder. The Scheme aims to achieve this by adopting the following investment strategy :
- Invest around 85% of the net assets of the Scheme in fixed income securities of roughly 15 months maturity and adopt a predominantly buy and hold strategy. This will mean that over medium term irrespective of the interest rate movements, the Scheme will earn returns that are nearly equal to the underlying yield on the bonds.
- Invest the balance nearly 15% of the net assets of the Scheme in equities where the dividend yields are moderate to high. The investment focus will be on dividend yield stocks.
Both a) and b) combined together represent two sources of yield on the entire portfolio. These two yields combined together are expected to reduce the chances and extent of a capital loss.
In order to implement the investment approach effectively, it would be important to periodically meet the management face to face. This would provide an understanding of their broad vision and commitment to the long-term business objectives. These meetings would also be useful in assessing key determinants of management quality such as orientation to minority shareholders, ability to cope with adversity and approach to allocating surplus cash flows. Discussions with management would also enable benchmarking actual performance against stated commitments.
Though every endeavour 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.
Pursuant to the SEBI Regulations, the Scheme shall not make any investment in :
- Any unlisted security of an associate or group company of the Sponsors; or
- Any security issued by way of private placement by an associate or group company of the Sponsors; or
- The listed securities of group companies of the Sponsors which is in excess of 25% of the net assets.
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.
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 Investments :
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 Borrowings & Lending Obligations (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 fixed income securities and equity/equity related instruments. Every investment opportunity in fixed income securities 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 bonds and debentures 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.
Systematic Investment Plan (SIP)
Details
| Serial No. |
Scheme Name |
Minimum Application Amount(Rs.) |
Entry Load # |
Exit Load # |
| 1 |
HDFC Multiple Yield Fund - Plan 2005 - Dividend / Growth* |
Rs.500 for Monthly & Rs.1500 for Quarterly |
NIL |
- In respect of each purchase / switchin of units, an Exit Load of 1.00% is payable if Units are redeemed / switched-out within 15 months from the date of allotment.
- No Exit Load is payable if Units are redeemed / switched-out after 15 months from the date of allotment.
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# Applicable for SIPs registered w.e.f from August 1, 2009
* SIP avaliable in Existing and Direct Plan
Fund Manager
Mr. Chirag Setalvad (Equities) (since April 2, 07)
Mr. Anil Bamboli (Debt) (since Aug 17, 05)
Mr. Rakesh Vyas (since May 10, 2012) - Dedicated Fund Manager - Overseas Investments
Benchmark - CRISIL MIP Blended Index
Portfolios - Holdings
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