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Products Home / Products / Debt/ Income Fund / HDFC Short Term Plan
 
HDFC Short Term Plan Print

This product is suitable for investors who are seeking*:
  • regular income over short to medium term
  • investment in debt and money market instruments with a short to medium term maturity (average maturity profile of 9-18 months)
  • low risk. (BLUE)

*Investors should consult their financial advisers if in doubt about whether the product is suitable for them.

Note: Risk is represented as:

(BLUE) investors understand that their principal will be at low risk (YELLOW)) investors understand that their principal will be at medium risk (BROWN) investors understand that their principal will be at high risk
Investment Objective
The primary objective of the HDFC Short Term Plan is to generate regular income through investment in debt securities and money market instruments.

Basic Scheme Information
Nature of Scheme Open Ended Income Scheme
Inception Date February 28, 2002
Option

Existing Plans : Growth Option, Dividend Option, Dividend Option offers Dividend Reinvestment and Payout facility.

Direct Plan  (effective January 01, 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
Upfront 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.
Exit Load
(as a % of the Applicable NAV)
  • In respect of each purchase / switch - in of units, an exit load of 0.75% is payable if units are redeemed / switched out within 12 months from the date of allotment.
  • No exit load is payable if units are redeemed / switched - out after 12 months from the date of allotment.
  • Introduction of Direct Plan - modification in the Exit Load provisions, click here to read
Minimum Application Amount
(click here for SIP Details)
For new investors :Rs.5000 and any amount thereafter.
For existing investors : Rs. 1000 and any amount thereafter.
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: 22nd May 2014)
            1.00%

 

Excluding Service Tax on Investment Management Fees, if any. 

Direct Plan shall have a lower expense ratio by 0.20%.

(#) Any change in the expense ratio will be updated within two working days.



Plan Name NAV Date NAV Amount
Direct Plan - Dividend Option30 Oct 201410.3336
Direct Plan - Growth Option30 Oct 201426.0482
Dividend Option30 Oct 201410.3334
Growth Option30 Oct 201425.9369
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Investment Pattern
The following table provides the asset allocation (as a % of Net Assets) of the Scheme's portfolio.

Sr. No. Instruments Normal Allocation Normal Deviation Risk Profile of
the Instrument
1 Debt Securities 60% upto 33.33% Low to Medium
2 Money Market Instruments 40% upto 50% Low

It is the intention of the Scheme that the investments in securitised debts will not, normally, exceed 60% of the Net Assets of the Scheme.

In addition to the securities stated in the table above, the Scheme may enter into repos/reverse repos in the securities that it will invest in as may be permitted by the RBI. From time to time the Scheme may hold cash. A part of the net assets may be invested in the call money market or in an alternative investment for the call money market as may be provided by the RBI to meet the liquidity requirements.

Pending deployment as per investment objective, the moneys under the Scheme may be invested in short-term deposits of Scheduled Commercial Banks.
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Investment Strategy

With respect to the investment horizon profile, this Scheme is aimed to be positioned between the liquid scheme and the income scheme. The Scheme will invest in debt securities and money market instruments with a short to medium term maturity and aims to maintain an average maturity profile of 9 - 18 months under normal circumstances.

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 paper
  • Commercial bills
  • Treasury bills
  • Government securities having an unexpired maturity upto one year
  • CBLO (Collateralized Borrowing And Lending Obligation)
  • 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 (Mutual Funds) 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. Every investment opportunity 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 rating agencies registered with SEBI 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 rating agency registered with SEBI.

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(s).

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Systematic Investment Plan (SIP) Details

Serial No. Scheme Name Minimum Application Amount(Rs.) Current Entry Load Current Exit Load
1 HDFC Short Term Plan - Growth / Dividend* Rs.500 for Monthly & Rs.1500 for Quarterly NIL

In respect of each purchase / switch - in of units, an exit load of 0.75% is payable if units are redeemed / switched out within 12 months from the date of allotment.

No exit load is payable if units are redeemed / switched - out after 12 months from the date of allotment.


* SIP avaliable in Existing and Direct Plan
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Fund Manager
Mr. Anil Bamboli (since Jan 13, 04)

Mr. Rakesh Vyas (since May 10, 2012) - Dedicated Fund Manager - Overseas Investments

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Portfolios - Holdings
Please click here to view complete Scheme Portfolios
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