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HDFC Prudence Fund
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Value Research Rating
 *
IN HYBRID EQUITY - ORIENTED CATEGORY (30 schemes) for 3 and 5 year periods ending June 30, 2010
*Past performance is no guarantee of future results.
Please click here for details on the Rating Methodology.
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Investment Objective
The investment objective of the Scheme is to provide periodic returns and capital appreciation over a long period of time, from a judicious mix of equity and debt investments, with the aim to prevent/ minimise any capital erosion.
Basic Scheme Information
| Nature of Scheme |
Open Ended Balanced Scheme |
| Inception Date |
February 01, 1994 |
| Option/Plan |
Dividend Option,Growth Option. The Dividend Option offers Dividend Payout and Reinvestment Facility. |
Entry Load
(purchase / additional purchase / switch-in)
(click here for SIP Details)
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NIL
(With effect from August 1, 2009)
Please click here to go through the addendum. |
Exit Load
(as a % of the Applicable NAV)
(click here for SIP Details)
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- In respect of each purchase / switchin of units, an Exit Load of 1.00% is payable if Units are redeemed / 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.
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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 Days |
Tax Benefits
(As per present Laws) |
Please click for details |
Current Expense Ratio (#)
(Effective Date 22nd May 2009) |
On the first 100 crores average weekly net assets 2.50%
On the next 300 crores average weekly net assets 2.25%
On the next 300 crores average weekly net assets 2.00%
On the balance of the assets 1.75% |
| (#) 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 | 29 Jul 2010 | 31.0690 | | Growth Option | 29 Jul 2010 | 202.2670 |
Investment Pattern
The following table provides the asset allocation of the Scheme's portfolio.
The asset allocation under the respective Plans will be as follows :
| Sr.No. |
Type of Instruments |
Normal Allocation
(% of Net Assets) |
Risk Profile |
| 1 |
Equities & Equity related instruments |
40 - 75% |
Medium to High |
| 2 |
Debt Securities, Money Market instruments(including cash/call money) |
25 - 60% |
Low to Medium |
(Investment in Securitised debt, if undertaken,would not exceed 10% of the net assets of the Scheme.)
In such times when the interest rates are high, investment in debt would be more attractive versus equities and accordingly the Fund is likely to increase the debt component in the Scheme's portfolio. Similarly in times when the interest rates are low and the equity valuations are cheap, the Scheme is likely to reduce exposure to debt and increase exposure to equities. In addition to debt and equities the scheme will also invest in money market instruments. The exact proportion in money market instruments will be a function of the liquidity needs and the attractiveness of the debt/ equity markets. At times when neither the debt market nor equities are attractive for investment, more resources may be temporarily invested in money market investments to be invested in debt/ equities at a more appropriate time.
The Scheme may also invest upto 25% of net assets of the Scheme in derivatives such as Futures & Options and such other derivative instruments as may be introduced from time to time for the purpose of hedging and portfolio balancing and other uses as may be permitted under the Regulations and Guidelines.
The Scheme may also invest a part of its corpus, not exceeding 40% of its net assets, in overseas markets in Global Depository Receipts (GDRs), ADRs, overseas equity, bonds and mutual funds and such other instruments as may be allowed under the Regulations from time to time. Also refer to the Section on Policy on off-shore Investments by the Scheme(s).
Subject to the Regulations and the applicable guidelines, the Scheme may, engage in Stock Lending activities. Also refer to Section on Stock Lending by the Fund.
If the investment in equities and related instruments falls below 40% of the portfolio or rises above 60% of the portfolio of the Scheme at any point in time, it would be endeavoured to review and rebalance the composition.
Notwithstanding anything stated above, subject to the regulations, the asset allocation pattern indicated above may change from time to time, keeping in view market conditions, market opportunities, applicable regulations and political and economic factors. It may be clearly understood that the percentages stated above are only indicative and are not absolute and that they can vary substantially depending upon the perception of the AMC, the intention being at all times to seek to protect the NAV of the scheme. Such changes will be for short term and defensive considerations.
Provided further and subject to the above, any change in the asset allocation affecting the investment profile of the Scheme and amounting to a change in the Fundamental Attributes of the Scheme shall be effected in accordance with sub-regulation (15A) of regulation 18 of SEBI regulations.
Investment Strategy
As outlined above, the investments in the Scheme will comprise both debt and equities. The Fund would invest in Debt instruments such as Government securities, money market instruments, securitised debts, corporate debentures and bonds, preference shares, quasi Government bonds, and in equity shares. In the long term, the mix between debt instruments and equity instruments is targeted between 60:40 and 40:60 respectively. The exact mix will be a function of interest rates, equity valuations, reserves position, risk taking capacity of the portfolio without compromising the consistency of dividend pay out (in the case of Dividend Plan), need for capital preservation and the need to generate capital appreciation.
Fund Manager
Mr. Prashant Jain (since Jun 19, 03)*
Mr. Anand Laddha - Dedicated Fund Manager - Foreign Securities
| Portfolio - Holdings (as on June 30, 2010) | | Company / Issuer | Industry+ / Rating | % to NAV | | EQUITY & EQUITY RELATED | | | | State Bank of India | Banks | 3.66 | | Oil & Natural Gas Corporation Ltd. | Oil | 3.53 | | Bank of Baroda | Banks | 3.20 | | Titan Industries Ltd. | Consumer Non Durables | 2.61 | | Zee Entertainment Enterprises Ltd. | Media & Entertainment | 2.13 | | 3M India Ltd. | Trading | 2.05 | | LIC Housing Finance Ltd. | Finance | 2.04 | | Oil India Ltd. | Oil | 1.88 | | ICICI Bank Ltd. | Banks | 1.86 | | NTPC Ltd. | Power | 1.79 | | Total of Top Ten Equity Holdings | | 24.75 | | Total Equity & Equity Related Holdings | | 74.61 | | Total Government Securities, Money Market Instruments & Other Credit Exposures (aggregated holdings | | 23.23 | | Cash, Cash Equivalents and Net Current Assets | | 2.16 | | Grand Total | | 100.00 | | Net Assets (Rs. In Lakhs) | | 439787.50 |
Note : $ Sponsor
Returns
| HDFC Prudence Fund | (NAV as at evaluation date 30-June-2010, Rs. 196.073 Per unit) | | Date | Period | NAV Per Unit (Rs.) | Returns (%) ^ | Benchmark Returns (%) #
| | March 30, 2007 | Last 1188 days | 110.132 | 19.39** | 10.95**
| | December 30, 2009 | Last 182 days | 173.992 | 12.69* | 3.05*
| | June 30, 2009 | Last 1 Year (365 days) | 135.445 | 44.76* | 17.34*
| | June 29, 2007 | Last 3 Years (1097 days) | 124.716 | 16.25** | 8.73**
| | June 30, 2005 | Last 5 Years (1826 days) | 64.682 | 24.82** | 14.89**
| | June 30, 2000 | Last 10 Years (3652 days) | 20.420 | 25.37** | N.A.
| | February 1, 1994 | Since Inception (5993 days) | 10.000 | 21.76** | N.A.
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* Absolute Returns ** Compounded Annualised Returns
# CRISIL Balanced Fund Index
^ Past performance may or may not be sustained in the future
$$ Adjusted for the dividends declared under the scheme prior to its splitting into the Dividend and Growth Plans
SIP Returns
| SIP Investments | Since Inception | 10 Year | 5 Year | 3 Year | 1 Year | | Total Amount Invested (Rs.) | 197,000 | 120,000 | 60,000 | 36,000 | 12,000
| | Market Value as on June 30, 2010 (Rs.) | 2,110,492.14 | 562,446.10 | 108,572.83 | 56,211.23 | 15,688.01
| | Returns (Annualised)*(%) | 25.23% | 29.07% | 23.95% | 31.20% | 61.58%
| | Benchmark Returns (Annualised)(%)# | N.A. | N.A. | 13.20% | 14.63% | 31.22%
| | Market Value of SIP in Benchmark# | N.A. | N.A. | 83,547.14 | 44,730.64 | 13,933.61
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Past performance may or may not be sustained in the future Inception Date of HDFC Prudence Fund is February 1, 1994
* Load is not taken into consideration and the Returns are of Growth Plan / Option. Investors are advised to refer to the Relative Performance table furnished as above for non-SIP returns
# Benchmark - CRISIL Balanced Fund Index
Disclaimer: The above investment simulation is for illustrative purposes only and should not be construed as a promise on minimum returns and safeguard of capital. The AMC / Mutual Fund is not guaranteeing or promising or forecasting any returns. SIP does not assure a profit or guarantee protection against a loss in a declining market. Please refer SIP Enrolment Form or contact nearest ISC for SIP Load Structure.
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