HDFC Mutual Fund is one of the largest asset management companies in India with the total AUM amounting to Rs. 2,37,177.61 crore as on March 31, 2017. It was incorporated in the year 1999, under the sponsorship of Housing Development Finance Corporation (HDFC) Limited, and Standard Life Investments Limited. It launched its first product in the year 2000, which has gained recognition in the market to a large extent. With the growing pace in the investment market, it has tracked many historical changes across the world. Today, it has various products which are suitable for different kinds of investment objectives.
Product Categories Offered By HDFC Mutual Funds:
1. Equity or Growth Funds: HDFC equity funds are designed for the investors whose investment objective is to attain high growth in the long term. There are several schemes of this category which have the capacity to provide capital appreciation in both the long- and short-term period. The various schemes of HDFC MF falling under equity funds have diversified portfolios. These mutual funds carry risk profile ranging from average to high.
2. Debt or Income Funds: The funds in this category have the objective of generating a fixed and regular income for its investors. They primarily invest in various instruments of government securities, money market instruments, treasury bills, and commercial papers, etc. The investors who are seeking periodical income can invest their money in this category. They contain relatively less risk ranging from low to average as per the riskometer.
3. Liquid Funds: Many people are there who want to expose themselves to the mutual fund investment market. But, they stay back from investment due to the fear that their money will be locked. Liquid funds are the right choice in which they can start their investment. These funds have high liquidity due to which the investment can be redeemed at any point in time along with the earned returns.
4. Fixed Maturity Plans (FMPs): This plan is suitable for those who are seeking predictable returns over a period of time. HDFC FMPs are intended to acquire income through investments in government securities, money market or debt instruments, etc. They have a fixed maturity period before which the parked money in the schemes cannot be redeemed. The maturity date is mentioned in the scheme related documents.
5. Children’s Gift Fund: Every individual wants his/her child to get the best in everything at present as well as in the future. To meet all those future financial expenses of your children, HDFC has Children’s Gift Fund. It invests in a mix of equity and debt instruments to gain long-term capital appreciation.
6. Retirement Savings Fund: Everyone wants to live a better retirement to enjoy the life to the fullest. HDFC Mutual Funds has a fund category which fulfils the requirements of investors post retirement. These funds provide periodical income to the investors after the attainment of retirement age, i.e., 60 years, or as mentioned in the investment documents.
Furthermore, HDFC Mutual Funds have many more categories of schemes with different nature and investment objectives. In short, they have all that you need. For HDFC Mutual Fund online investments, you have the option to invest through Systematic Investment Plan (SIP) or Lumpsum in various schemes via online investment portals.
In this article, a brief knowledge about the different categories of HDFC Mutual Fund is provided. It has a large number of funds to suit your investment objective.