HDFC INCOME FUND |
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- Initial offer opens: July 20,2000
- Closing Date:
August 10,2000
- Nature of Scheme: Open Ended
- AMC: HDFC Asset Management Company
Limited
- Load:No Entry Load
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- Continuous Offer opens: within 42
days from the close of the initial offer period
- Sponsor: Housing Development
Finance Corporation Limited
- Trustee: HDFC Trustee Company
Limited
- Minimum subscription:300 units at
Rs.10/- per unit at par amounting to Rs.3000/-
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Objective of
the present fund: The primary objective of the scheme is to optimise returns while
maintaining a balance of safety, yield and liquidity.
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- This scheme offers dividend option and Growth option.
- The scheme also offers systematic investment and
withdrawal Plans.
- Unit holders have switching facility from one scheme to
another.
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Strategy of investment |
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Under normal circumstances the fund proposes to invest 80% of investible funds in
debt instruments and the balance in money market instruments. |
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Comparative Analysis of similar other funds |
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| Name of the Fund |
NAV as on 30.06.2000 |
NAV as on
31.05.2000 |
NAV as on
30.04.2000 |
NAV as on
31.03.2000 |
NAV as on
29.02.2000 |
NAV as on
31.01.2000 |
Alliance Monthly Income (Gr) |
12.75 |
12.59 |
12.65 |
12.78 |
13.00 |
12.36 |
| ING
Income Portfolio(Gr) |
11.39 |
11.35 |
11.26 |
11.11 |
11.08 |
10.95 |
| Kothari
Pioneer Income Builder Account (Gr) |
14.67 |
14.67 |
14.57 |
14.40 |
14.18 |
14.06 |
| Prudential
ICICI Income Plan (Gr) |
12.72 |
12.72 |
12.66 |
12.44
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12.45 |
12.24 |
| Reliance
Income Fund (Gr) |
13.43 |
13.40 |
13.27 |
13.09 |
13.08 |
12.89 |
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The NAVs of the above funds are steadily growing. A careful study of the
above table reveals that the returns are increasing at a slow pace but with constant
appreciation. Unlike Balanced and Growth funds the unprecedented upheavals in the
stock market did not have much impact on NAVs of these income funds.
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Risk Perception |
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HDFC Income Fund is the first scheme being launched by HDFC Mutual Fund. The Asset
Management company has no previous experience in this field. In the existing market
scenario experience in managing a mutual fund is definitely an added advantage. However
considering the experience of HDFC in banking and Housing Development Sector and the
amount of risk involved in income funds, the investors who are risk averse
may be benefited in long run by investing in this fund.
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