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HDFC Income Fund Print
Investment Objective | Scheme Information & NAV | Investment Pattern & Strategy | Portfolio | Returns and benchmarks | Systematic Investment Plan (SIP) Details | Fund Manager | Offer Document / Scheme Information Document (SID) | Application Form
Investment Objective
The primary objective of the Scheme is to optimise returns while maintaining a balance of safety, yield and liquidity.

Basic Scheme Information
Nature of Scheme Open Ended Income Scheme
Inception Date September 11, 2000
Option

Existing Plan : Dividend & Growth Option. The Dividend option offers Dividend Payout and Reinvestment Facility.

Direct Plan (w.e.f. 01 Jan 2013) : Dividend Option, Growth Option. The Dividend Option offers Dividend Payout and Reinvestment Facility.

Entry Load
(For Lumpsum Purchases and investments through SIP/STP)		 NIL
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.
Exit Load
(as a % of the Applicable NAV)
  • In respect of each purchase / switch - in of units, an exit load of 0.50% is payable if units are redeemed / switched out within 6 months from the date of allotment.
  • No exit load is payable if units are redeemed / switched - out after 6 months from the date of allotment.
  • 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.
Lock-In-Period Nil
Net Asset Value Periodicity Every Business Day.
Redemption Proceeds Normally dispatched within 3-4 Business days
Tax Benefits
(As per present Laws)		 Please click for details
Current Expense Ratio (#)
(Effective Date 11th January 2013)

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

 

Excluding Service Tax on Investment Management Fees, if any. 

Direct Plan shall have a lower expense ratio by 0.70%.

(#) Any change in the expense ratio will be updated within two working days.

Plan Name NAV Date NAV Amount
Dividend Option21 May 201311.8229
Growth Option21 May 201328.4030
Direct Plan - Dividend Option21 May 201311.8513
Direct Plan - Growth Option21 May 201328.4707
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Investment Pattern
The Scheme will retain the flexibility to invest in the entire range of debt and money market instruments. The flexibility is being retained to adjust the portfolio in response to a change in the risk to return equation for asset classes under investment, with a view to maintain risks within manageable limits.

The asset allocation under the Scheme will be as follows :

Sr.No. Type of Instruments Normal Allocation
(% of Net Assets)		 Normal Deviation
(% of Normal Allocation)		 Risk Profile
1 Debt instruments
(including securitised debt)		 80 - 100 50 Low to Medium
2 Money Market instruments
(including cash / CBLO / Reverse Repo)		 0 - 20 50 Low


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.

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
  • Collateralized Borrowing And Lending Obligation (CBLO)
  • 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.
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Investment Strategy


The AMC retains the flexibility to invest across all the securities / instruments in debt and money market.

Investments made from the net assets of the Scheme would be in accordance with the features of the Scheme and the provisions of the SEBI (Mutual Funds) Regulations. The AMC will strive to assess risk of the potential investment in terms of credit risk, interest rate risk and liquidity risk. The credit risk analysis would involve an assessment of the past track record and prospects for the company, the industry it operates in, the future cash flows from operations and the requirement for additional capital expenditure. An interest rate scenario analysis would be performed on an ongoing 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. The AMC will utilise ratings of rating agencies registered with SEBI 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 rating agency registered with SEBI. 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.

The AMC will attempt to reduce liquidity risk by investing in securities that would result in a staggered maturity profile of the portfolio, investment in structured securities that provide easy liquidity and securities that have reasonable secondary market activity. 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 to an adverse impact on the Net Asset Value of the Scheme.

Investment Policies

Consistent with the investment objectives of the scheme, the AMC aims to identify securities which offer superior levels of yield at low levels of risk. The investment team of the AMC will carry out an internal credit analysis of all securities included in the investment universe.

The Scheme may also use various derivative and hedging products from time to time, as would be available and permitted by SEBI, in an attempt to protect the value of the portfolio and enhance Unit holders' interest. The Investment Manager may therefore enter into forward contracts, future contracts or buy or sell options in an effort to maintain risks at acceptable levels. 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, the Mutual Fund may also appoint overseas investment advisors and other service providers, as and when permissible under the regulations
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Systematic Investment Plan (SIP) Details

Serial No. Scheme Name Minimum Application Amount(Rs.) Current Entry Load Current Exit Load
1 HDFC Income Fund - Dividend / Growth Rs.500 for Monthly & Rs.1500 for Quarterly NIL
  • In respect of each purchase of Units, Exit Load of 0.50% is payable if Units are redeemed/switched out within 6 months from the date of allotment.
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Fund Manager
Mr. Shobhit Mehrotra (since Sep 1, 2007)
Mr. Rakesh Vyas (since May 10, 2012) - Dedicated Fund Manager - Overseas Investments
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Portfolios - Holdings
Please click here to view complete Scheme Portfolios
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