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HDFC Medium Term Opportunities Fund
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Investment Objective
To generate regular income through investments in Debt/Money Market Instruments and Government Securities with maturities not exceeding 60 months.
Basic Scheme Information
| Nature of Scheme |
Open - Ended Income Scheme |
| Inception Date |
June 29, 2010 |
| Option/Plan |
Existing Plan : Growth option and Dividend option.
Direct Plan (w.e.f. 01 Jan 2013) : Dividend Option, Growth Option. |
Entry Load
(For Lumpsum Purchases and investments through SIP/STP) |
Not Applicable.
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 2% is payable if units are redeemed/switched out within 12 months from the date of allotment.
- In respect of each purchase/switch-in of units, an exit load of 1% is payable if units are redeemed/switched out after 12 months but within 18 months from the date of allotment.
- No exit load is payable if units are redeemed/switched-out after 18 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 |
Purchase: Rs. 5,000 and any amount thereafter.
Additional Purchase: Rs. 1,000 and any amount thereafter. |
| 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 3rd October 2012) |
0.27% |
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Excluding Service Tax on Investment Management Fees, if any.
Direct Plan shall have a lower expense ratio by 0.06%.
(#) Any change in the expense ratio will be updated within two working days. |
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Plan Name |
NAV Date |
NAV Amount |
| Dividend Option | 19 May 2013 | - | | Growth Option | 19 May 2013 | - | | Direct Plan - Dividend Option | 19 May 2013 | - | | Direct Plan - Growth Option | 19 May 2013 | - |
Investment Pattern
The table below provides the broad asset allocation of the portfolio of Scheme to be followed under normal circumstances.
| Instruments |
Indicative allocations (% of total assets) |
Risk Profile |
| Minimum |
Maximum |
| Debt and Money Market Instruments (including securitised debt#) |
60 |
100 |
Low to Medium |
| Government Securities |
0 |
40 |
Low |
# Investments in securitised debt, if undertaken, shall not normally exceed 75% of the net assets of the Scheme.
Investment Strategy
The investment objective of the Scheme is to generate regular income through investments in Debt/Money Market Instruments and Government Securities with maturities not exceeding 60 months. The Scheme seeks to generate income through investments in a range of debt and money market instruments of various credit ratings (above investment grade) with a view to maximizing income while maintaining an optimum balance of yield, safety and liquidity. The Scheme shall endeavour to develop a well- diversified, high credit portfolio of debt (including Securitised debt) and other securities that minimizes liquidity and credit risk.
Though every endeavor will be made to achieve the objective of the Scheme, the AMC/Sponsors/Trustees do not guarantee that the investment objective of the Scheme will be achieved. No guaranteed returns are being offered under the Scheme.
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 (MF) regulations. The AMC will strive to achieve the investment objective by way of a judicious portfolio mix comprising of Debt Securities, Money Market Instruments and Government Securities. 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 provide liquidity by maintaining a low average duration of the portfolio and by investing in securities that would result in a staggered maturity profile of the portfolio. Liquidity will also be managed by investing in the Collaterilsed Borrowing & Lending Obligations (CBLO) / repo market when CBLO money / repo yields are attractive relative to other money market yields. Investment in debt instruments would generally be in securities that have reasonable secondary market activity. Due to the short duration of the portfolio and the low risk product profile, the effect of volatility in debt markets on the portfolio will be limited. This permits investors to enhance their yields without compromising on the quality of the portfolio. 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 leading to an adverse impact on the Net Assets of the Plan(s) under the Scheme.
Systematic Investment Plan (SIP)
Details
| Serial No. |
Scheme Name |
Minimum Application Amount(Rs.) |
Entry Load # |
Exit Load # |
| 1 |
HDFC Medium Term Oppurtunities Fund - Dividend / Growth |
Rs.500 for Monthly & Rs.1500 for Quarterly |
NIL |
- In respect of each purchase/switch-in of units, an exit load of 2% is payable if units are redeemed/switched out within 12 months from the date of allotment.
- In respect of each purchase/switch-in of units, an exit load of 1% is payable if units are redeemed/switched out after 12 months but within 18 months from the date of allotment.
- No exit load is payable if units are redeemed/switched-out after 18 months from the date of allotment.
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# Applicable for SIPs registered w.e.f from August 1, 2009
Fund Manager
Mr. Shobhit Mehrotra
Mr. Rakesh Vyas - (Dedicated Fund Manager for Overseas Investments)
Portfolios - Holdings
Please click here to view complete Scheme Portfolios
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