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HDFC Core and Satellite Fund
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Investment Objective
The primary objective of the Scheme is to generate capital appreciation through equity investment in companies whose shares are quoting at prices below their true value.
Basic Scheme Information
| Nature of Scheme |
Open Ended Growth Scheme |
| Inception Date |
September 17, 2004 |
| Option/Plan |
Growth Plan,Dividend Plan. The Dividend Plan 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 despatched within 3 Business 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 Plan | 29 Jul 2010 | 22.3890 | | Growth Plan | 29 Jul 2010 | 39.3830 |
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 Asset) |
Normal Deviation
(% of Normal Allocation) |
Risk Profile of the Instrument |
| 1 |
Equity & Equity related instruments |
90 - 95% |
A minimum of 5% of net assets of the Fund |
High |
| 2 |
Fixed Income Securities (including securitised debt of upto 10% of net assets & Money Market instruments) |
5 - 10% |
95% of the net assets can be invested in fixed income securities in exceptional circumstances |
Low to Medium |
Pending deployment of funds of the Scheme in securities in terms of the investment objective of the Scheme, the AMC may invest the funds of the Scheme in short term deposits of scheduled commercial banks. The Scheme may seek investment opportunity in the ADR / GDR / Foreign Equity and Debt Securities, in accordance with guidelines stipulated in this regard by SEBI and RBI from time to time. Under normal cricumstances, the Scheme shall not have an exposure of more than 25% of its net assets in foreign securities subject to regulatory limits.
Change In Investment Pattern
Subject to SEBI 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 must be clearly understood that the percentages stated above are only indicative and not absolute. These proportions may vary substantially depending upon the perception of the AMC, the intention being at all times to seek to protect the interests of the Unit holders. Such changes in the investment pattern will be for short term and only for defensive considerations.
Investment Strategy
The net assets of the Scheme will be invested primarily in equity and equity related instruments in a portfolio comprising of 'Core' group of companies and 'Satellite' group of companies. The 'Core' group will comprise of well established and predominantly large cap companies whereas the 'Satellite' group will comprise of predominantly small-mid cap companies that offer higher potential returns but at the same time carry higher risk. The 'Satellite' group will complement the 'Core' group.
The companies that will comprise the 'Core' group will have the following characteristics :
- Companies with a long and successful track record.
- Companies that enjoy leading positions in their markets (say No. 1/2/3) and have significant competitive advantages.
- Companies that are available below their intrinsic value.
Such companies typically will be large cap companies. Large cap companies are generally those companies with market capitalisation of more than Rs. 2,500 crore. The number of stocks in this category is expected to be in the range of 10-20 and the average exposure per company will thus be between 3-8% of the portfolio.
The 'Core' portion is expected to be between 60-80% of the portfolio.
The companies that will comprise the 'Satellite' group of companies will be predominantly small-mid cap companies that offer higher potential returns compared to the companies in the 'Core' group but at the same time will also carry higher risk. Small-mid cap companies are generally those companies with market capitalisation of less than Rs. 2,500 crore.
The higher potential for returns will be on account for one or more of the following reasons :
- Higher growth potential either because of presence in an emerging area or a new business model or because of smaller size.
- New technology/research driven company without much commercial success till present.
- A turnaround case.
- An out-of-favour or an ignored company,i.e. a company facing a temporary setback as a result of which the stock price is depressed and / or the stock is not actively covered by analysts.
Money Market Instruments Include
- Commercial paper
- 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). 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 AMCs view regarding current market conditions, interest rate outlook and the stability of ratings.
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.
Fund Manager
Mr. Vinay Kulkarni (since Nov 21, 06)
Mr. Anand Laddha - Dedicated Fund Manager - Foreign Securities
| Portfolio - Holdings (as on June 30, 2010) | | Company | Industry+ | % to NAV | | EQUITY & EQUITY RELATED | | | | Infosys Technologies Ltd. | Software | 6.10 | | LIC Housing Finance Ltd. | Finance | 5.73 | | State Bank of India | Banks | 5.45 | | Emami Ltd. | Consumer Non Durables | 5.39 | | Bank of Baroda | Banks | 4.68 | | Tata Consultancy Services Ltd. | Software | 4.58 | | Motherson Sumi Systems Ltd. | Auto Ancillaries | 4.39 | | Crompton Greaves Ltd. | Industrial Capital Goods | 4.36 | | NTPC Ltd. | Power | 4.33 | | Sun Pharmaceutical Industries Ltd. | Pharmaceuticals | 4.12 | | Total of Top Ten Equity Holdings | | 49.13 | | Total Equity & Equity Related Holdings | | 98.89 | | Total Money Market Instrument & Other Credit Exposures (aggregated holdings in a single issuer) | | 0.00 | | Cash, Cash Equivalents and Net Current Assets | | 1.11 | | Grand Total | | 100.00 | | Net Assets (Rs. In Lakhs) | | 43493.52 |
Note : $ Sponsor
Returns
| HDFC Core & Satellite Fund | (NAV as at evaluation date 30-June-2010, Rs. 37.251 Per unit) | | Date | Period | NAV Per Unit (Rs.) | Returns (%) ^ | Benchmark Returns (%) #
| | March 30, 2007 | Last 1188 days | 23.935 | 14.56** | 11.95**
| | December 30, 2009 | Last Six months (182 days) | 33.9 | 9.88* | 3.64*
| | June 30, 2009 | Last 1 Year (365 days) | 24.903 | 49.58* | 27.22*
| | June 29, 2007 | Last 3 Years (1097 days) | 27.011 | 11.29** | 7.58**
| | June 30, 2005 | Last 5 Years (1826 days) | 13.372 | 22.73** | 19.47**
| | June 30, 2000 | Last 10 Years (3652 days) | N.A | N.A. | 15.87**
| | September 17, 2004 | Since Inception (2112 days) | 10.000 | 25.52** | 21.61**
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* Absolute Returns ** Compounded Annualised Returns
# BSE 200
^ Past performance may or may not be sustained in the future
SIP Returns
| SIP Investments | Since Inception | 10 Year | 5 Year | 3 Year | 1 Year | | Total Amount Invested (Rs.) | 70,000 | N.A. | 60,000 | 36,000 | 12,000
| | Market Value as on June 30, 2010 (Rs.) | 128,309.67 | N.A. | 98,867.96 | 54,460.88 | 15,552.92
| | Returns (Annualised)*(%) | 20.72% | N.A. | 20.07% | 28.83% | 59.18%
| | Benchmark Returns (Annualised)(%)# | 16.80% | N.A. | 16.15% | 18.99% | 39.16%
| | Market Value of SIP in Benchmark# | 114,561.95 | N.A. | 89,827.56 | 47,585.73 | 14,402.68
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Past Performance may or may not be sustained in the future Inception Date of HDFC Core & Satellite Fund is September 17, 2004
* Load is not taken into consideration and the returns are of Growth Plan/Option. In case the SIP date falls on a non business day, the SIP is processed on the next business day
# Benchmark - BSE 200
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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