During the trading sessions of the last few months of 2018, the mutual fund industry suffered a lot from the downfall of the equities. This resulted in the overall depreciation of the Assets Under Management (AUM) of mutual funds in India. According to the Association of Mutual Fund India (AMFI), the average AUM of mutual funds suffered a loss of Rs 70,000 crore. During this period, the majority of mutual fund AMCs faced a loss but things were quite different for HDFC Mutual Fund.
Due to a consistent inflow of investments in the equity as well as debt category of mutual funds, HDFC Mutual Fund witnessed terrific growth in the AAUM and became the largest fund house in India beating ICICI Prudential Mutual Fund by a notable margin. The downgrade of IL&FS also played its part in leading HDFC MF to the top position. The top position has been regained after March 2016 and is likely to be maintained as the AUM of the funds provided by HDFC Mutual Fund is constantly increasing. The most chosen schemes of HDFC Mutual Fund have been introduced below.
Best Schemes of HDFC Mutual Fund
Majority of the schemes offered by HDFC Mutual Fund have been performing well in the recent market condition. Out of all some have been outstanding and can be a good bet according to the current market condition.
HDFC Hybrid Equity Fund
It is an aggressive hybrid scheme with a gigantic AUM as a large number of investors trust this scheme for long term capital gains. The fund has a mixed portfolio of equity and debt instrument. Nearly 65% of the corpus is invested in equities and the rest in debt securities to balance out the volatility. In the long tenure of more than 5 years, this fund has performed even better than the pure equity schemes and delivered higher returns. This fund can be chosen by the investors who have moderate risk appetite and aim for long term capital appreciation.
HDFC Midcap Opportunities Fund
It is one of the best mid-cap funds in India as the returns of more than 5 years stand at best in the category. The fund also uses equities of small and large-cap companies with 10% allocation in each category. It has beaten the benchmark with a significant margin and possesses the highest AUM in the category of mid-cap funds. This fund possesses high risk and must be chosen by aggressive investors who can tolerate high risk and can stay invested for more than 5 years.
HDFC Small Cap Fund
It is the most aggressive fund of HDFC Mutual Fund and is one of the riskiest funds in the Indian mutual fund industry but has the ability to deliver outstanding returns to the investors. The fund picks small caps through a mix of top-down and bottom-up strategy. Nearly 60% of the corpus is invested in equities of small-cap companies while the rest is allocated in mid-caps. The fund must be chosen by investors with a high-risk appetite for long term wealth creation. Investments must be accumulated for more than 7 years for beneficial returns.
HDFC Short Term Debt Fund
This top performing short duration debt fund witnessed remarkable inflow of investment after the downgrade of IL&FS. It is a trustworthy scheme which possesses low risk as the instruments are chosen by the fund manager are of high credit ratings and low rate sensitivity. The average maturity tenure of the instruments chosen by the fund manager is 1.38 years while the yield on maturity ranges between 8.5% to 9%. This fund is the right choice for conservative investors for decent capital appreciation as the expense ratio is also low.
HDFC Mutual Fund has played a key role in the development of the mutual fund industry in India. It has always focused on the needs of the investors and came up with innovative schemes to enhance the financial strength and stability of the investors.
The article describes the best schemes of HDFC Mutual Fund which led the AMC to be the largest in India.