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HDFC FMP 100D September 2010 (2)
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Investment Objective
The investment objective of the Plan(s) under the Scheme is to generate income through investments in Debt / Money Market Instruments and Government Securities maturing on or before the maturity date of the respective Plan(s).
Basic Scheme Information
| Nature of Scheme |
Close-Ended Income Scheme |
| New Fund Offer Opens On |
September 15, 2010 |
| New Fund Offer Closes On |
September 16, 2010 |
| Option/Plan |
Growth option and Dividend option. Dividend Option offers Payout facility only. |
Entry Load
(as a % of the Applicable NAV)
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Not Applicable
- Pursuant to SEBI circular no. SEBI/IMD/CIR No.4/ 168230/09 dated June 30, 2009, no entry load will be charged by the Scheme to the investor. 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.
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Exit Load
(as a % of the Applicable NAV)
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Not Applicable
- The Units under the Plan cannot be directly redeemed with the Fund as the Units are listed on National Stock Exchange of India Limited.
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Minimum Application Amount
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Rs. 5,000 and in multiples of Rs. 10 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 29th November 2010) |
0.35% |
| (#) Any change in the expense ratio will be updated within two working days. |
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Plan Name |
NAV Date |
NAV Amount |
| Growth Option | 19 May 2013 | - | | Dividend Option | 19 May 2013 | - |
Investment Pattern
The Asset Allocation Pattern of the Scheme:
| Instruments |
Indicative allocations (% of total assets) |
Risk Profile |
| Minimum |
Maximum |
High / Medium / Low |
| Debt and Money Market Instruments (including securitised debt) |
60% |
100% |
Low to Medium |
| Government Securities |
0% |
40% |
Low |
Investments in securitised debt shall not normally exceed 75% of the net assets of the respective
Plan(s).
Investment Strategy
The primary objective of the Plan(s) under the Scheme is to generate income through investments in Debt / Money Market Instruments and Government Securities maturing on or before the maturity date of the respective Plan(s).
Investors can subscribe (purchase) / redeem (sell) Units on a continuous basis on the National Stock Exchange of India Ltd. on which the Units are listed during the trading hours like any other publicly traded stock. In view of the nature of the Scheme, there will likely be no turnover in the portfolio (except for change in composition of portfolio of securities made as per the prevailing market conditions) of the
Plan(s).
Risk Control
Investments made from the corpus of the Plan(s) 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, money market instruments and government securities. 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 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 recognized 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.
Applicable NAV (after the scheme opens for repurchase)
The NAV applicable for purchase or redemption or switching, based on the time of the Business Day on which the application is accepted.
Fund Manager
Mr. Bharat Pareek
Mr. Miten Lathia - (Dedicated Fund Manager for Overseas Investments)
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