HDFC Children's Gift Fund - Investment Plan
The primary objective of the Scheme is to generate long term capital appreciation. However, there can be no assurance that the investment objective of the Scheme / Plans will be achieved.
Basic Scheme Information
|Nature of Scheme
||Open Ended Balanced Scheme |
||March 02, 2001|
Existing Plan : Growth Plan. (Equity Oriented)
Direct Plan (w.e.f. 01 Jan 2013) : Growth Plan. (Equity Oriented)
(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.
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(as a % of the Applicable NAV)
- For Units subject to Lock-in Period: NIL
For Units not subject to Lock-in Period :
3% if the Units are redeemed / switched-out within one year from the date of allotment,
2% if the Units are redeemed / switched-out between the first and second year of the date of allotment,
1% if Units are redeemed /switched-out between the second and third year of the date of allotment,
Nil if the Units are redeemed / switched -out after third year from the date of allotment. No Exit Load shall be levied on bonus units and units allotted on dividend reinvestment.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.
||If opted: Until the Unit Holder (being the beneficiary child) attains the age of 18 years or until completion of 3 years from date of allotment , whichever is later |
|Net Asset Value Periodicity
||Every Business Day. |
||Normally dispatched within 3-4 Business 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 2.25%
On the next 300 crores daily net assets 2.00%
On the next 300 crores daily net assets 1.75%
On the balance of the net assets 1.50%
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 0.61%.
(#) Any change in the expense ratio will be updated within two working days.
|Direct Plan - Growth Option||30 Jul 2014||72.6730|
|Growth Plan||30 Jul 2014||71.9440|
The corpus of the Scheme will be invested primarily in equity and equity related instruments. The Scheme may invest a part of its corpus in debt and money market instruments, in order to manage its liquidity requirements from time to time, and under certain circumstances, to protect the interests of the Unit holders.
The asset allocation under the respective Plans will be as follows :
||Type of Instruments
(% of Net Asset)
|Risk Profile of |
||Equities and Equity Related Instruments
||40 - 75%
||Debt & Money Market Instruments
||25 - 60%
||Low to Medium|
(Investment in Securitised debt, if undertaken, would not exceed 20% of the net assets of the Scheme.)
Investment Plan :
The net assets of the Plan will be primarily invested in Equities and Equity related instruments. The AMC will also invest the net assets of the Plan in Debt / Money market instruments with an objective of generating long term returns and maintaining risk under control.
- Equity Investments :
The investment approach would be based on the concept of economic earning power and cash return on investments. Five basic principles serve as the foundation for this investment approach.
They are as follows :
- Focus on the long term
- View our investments as conferring a proportionate ownership of the business.
- Maintain a margin of safety (i.e. the price of purchase represents a discount to the intrinsic value of that business).
- Maintain a balanced outlook on the market by regularly monitoring economic trends and investor sentiment.
- The decision to sell a holding would be based on one of three reasons :
- The anticipated price appreciation has been achieved or is no longer probable; or
- Alternative investments offer superior total return prospects; or
- A fundamental change has occurred in the company or the market in which it competes.
In summary, the assessment of investment value is a function of extensive research and based on data and reasoning, rather than current fashion and emotion. The idea is to develop a model that allows us to identify "businesses with superior growth prospects and good management, at a reasonable price".
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 thei 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.
- 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
- Call or notice money
- 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) and negotiated deals. 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. In case a debt instrument is not rated, prior approval of the Board of Directors of Trustee and AMC will be obtained for such an investment. 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.
Pursuant to the SEBI Regulations, the Scheme shall not make any investment in :
- any unlisted security of an associate or group company of the Sponsor; or
- any security issued by way of private placement by an associate or group company of the Sponsor; or
- the listed securities of group companies of the Sponsor 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.
Mr. Chirag Setalvad (since April 2, 07)
Mr. Rakesh Vyas - Dedicated Fund Manager - Foreign Securities
Portfolios - Holdings
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