HDFC Growth Fund
The primary investment objective of the Scheme is to generate long term capital appreciation from a portfolio that is invested predominantly in equity and equity related instruments.
Basic Scheme Information
|Nature of Scheme
||Open Ended Growth Scheme |
||September 11, 2000|
Existing Plan : Dividend Option,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.
(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)
- 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.
|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.
|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 2.50%
On the next 300 crores daily net assets 2.25%
On the next 300 crores daily net assets 2.00%
On the balance of the net assets 1.75%
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 0.43%.
(#) Any change in the expense ratio will be updated within two working days.
|Dividend Option||04 Dec 2013||25.8800|
|Growth Option||04 Dec 2013||90.2330|
|Direct Plan - Growth Option||04 Dec 2013||90.5980|
|Direct Plan - Dividend Option||04 Dec 2013||25.9860|
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 Scheme will be as follows :
||Type of Instruments
(% of Net Asset)
(% of Normal Allocation)
||Equity & Equity related instruments
||80 - 100
||Medium to High|
||Debt Securities, Money Market instruments & Cash
(including money at call)
|0 - 20
||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 investment approach will be based on a set of well established but flexible principles that emphasise the concept of sustainable economic earnings and cash return on investment as the means of valuation of companies.
Five basic principles serve as the foundation for this investment approach. They are as follows :
- Focus on the long term
There is substantive empirical evidence to suggest that equities provide the maximum risk adjusted returns over the long term. In an attempt to take full advantage of this phenomenon, investments would be made with a long term perspective.
- Investments confer proportionate ownership
The approach to valuing a company is similar to making an investment in a business. Therefore, there is a need to have a comprehensive understanding of how the business operates. The key issues to focus on are growth opportunities, sustainable competitive advantage, industry structure and margins and quality of the management.
- Maintain a margin of safety
The benchmark for determining relative attractiveness of stocks would be the intrinsic value of the business. The Investment Manager would endeavor to purchase stocks that represent a discount to this value, in an effort to preserve capital and generate superior growth.
- Maintain a balanced outlook on the market
The investment portfolio would be regularly monitored to understand the impact of changes in business and economic trend as well as investor sentiment. While short-term market volatility would affect valuations of the portfolio, this is not expected to influence the decision to own fundamentally strong companies.
- Disciplined approach to selling
The decision to sell a holding would be based on either the anticipated price appreciation being achieved or being no longer possible due to a change in fundamental factors affecting the company or the market in which it competes, or due to the availability of an alternative that, in the view of the Investment Manager, offers superior returns.
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 their 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. Discussion with management would also enable benchmarking actual performance against stated commitments.
In summary, the Investment Strategy is expected to be a function of extensive research and based on data and reasoning, rather than current fashion and emotion. The objective will be to identify "businesses with superior growth prospects and good management, at a reasonable price".
The Scheme may invest in listed / unlisted and/or rated / unrated debt or money market securities subject to limits indicated in the investment pattern. Investment in unrated debt securities will be made after obtaining the prior approval of the Board of the AMC and Trustees as per the SEBI Regulations.
The Scheme may invest in listed / unlisted and / or rated / unrated debt or money market securities subject to limits indicated in the investment pattern. 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.
Mr Srinivas Rao Ravuri (Since February 10, 2006)
Mr. Rakesh Vyas - Dedicated Fund Manager - Foreign Securities
Portfolios - Holdings
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