HDFC Gilt Fund |
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- Initial offer opens
: July 16, 2001
- Closing Date : July 17, 2001
- Issue Price : Rs 10
- Nature of Scheme : Open Ended
Income Scheme
- AMC : HDFC
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- Continuous Offer opens :
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- Sponsor : HDFC Ltd
- Trustee : HDFC Trustee Company Ltd
- Minimum subscription : Rs 3,000 and
in multiples of Rs 1,000
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Objective
of the fund: The primary objective of the Scheme is to generate credit risk-free
returns through investments in sovereign securities issued by the Central Government and /
or a State Government.
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- The Scheme offers investors two Plans each with its own
NAV, namely the :
Short Term Plan for investors who wish to invest for short time periods ( 3 months to 1
year).
Long Term Plan for investors who wish to invest for longer time periods ( more than 1
year).
The Plans are managed as separate investment portfolios. Each Plan will offer both a
growth and a dividend option. In other words, there will be two separate portfolios each
with two net asset values. The Dividend Option also offers a Dividend Reinvestment
Facility.
- SIP Option is available to Unit holders on the
commencement of on-going Sale and Redemption under the Scheme after the Initial Offer
Period.
- SWP Option is available.
- The entire initial issue expenses of the respective Plans
will be borne by the AMC. There is no Exit Load payable for the Units allotted under the
respective Plans during the Initial Offer Period.
- The Scheme will offer for Sale and Repurchase Units at NAV
based prices on every Business Day on an ongoing basis, commencing not later than 30 days
from the closure of Initial Offer Period.
- The Trustee reserves the right to extend the closing date
of the Initial Offer Period, subject to the condition that the subscription list of the
Initial Offer Period shall not be kept open for more than 30 days.
Investment Strategy |
The AMC proposes to invest the proceeds of the Short Term Plan in sovereign securities
issued by the Central Government and / or a State Government with short to medium term
residual maturities. It proposes to invest the proceeds of the Long Term Plan in sovereign
securities issued by the Central Government and / or State Government with medium to long
term maturities.Some of the
Schemes launched by the AMC HDFC :
- HDFC Balanced Fund
- HDFC Children's Gift Investment Plan
- HDFC Children's Gift Savings Plan
- HDFC Growth Fund
- HDFC Income Fund
- HDFC Liquid Fund
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Comparative Analysis of similar other funds |
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Name of the Fund |
NAV (in Rs) as on |
| 02.07.2001 |
01.06.2001
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02.05.2001 |
03.04.2000 |
01.03.2000 |
| Birla Gilt
Plus Liquid (Growth) |
12.269 |
12.076 |
11.903 |
11.819 |
11.792 |
| K Gilt 98
Investment Plan (Growth) |
14.157 |
13.796 |
13.496 |
13.299 |
13.368 |
| J M G-Sec
Fund Short Term Plan |
11.421 |
11.359 |
11.283 |
11.211 |
11.129 |
| PNB Debt Fund
(Growth) |
13.69 |
13.44 |
13.15 |
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12.95 |
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Risk Perception |
Government Securities where a fixed return is offered run price-risk like any other fixed
income security. Generally when interest rates drop, the prices increase. The extent of
fall or rise in the prices is a function of the existing coupon, days to maturity and the
increase or decrease in the level of interest rates. The new level of interest rates at
which government raises new money and / or the price levels at which the market is already
dealing in existing securities.
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