Oftentimes, you have heard financial experts suggesting you invest money in mutual funds. But do you know what this mutual fund is about? Before investing note, that it is a system of extracting money from either organization or from individual to invest in stocks and bonds. The research will let you know that there are seven different kinds of mutual funds and the hybrid fund is the underlined among all of them. In this regard, remember that hybrid fund is a particular type of mutual fund, which offers a well-blended investment option by focusing on both debt and equity. Hence relating to that today will highlight some significant facts on HDFC hybrid equity fund.
A brief on hybrid fund
The hybrid fund is all about raising the price or the value of the wealth, which works the best for the long run. Subsequently, a balanced portfolio is used to generate revenue in the short run. In this process, the manager allocates the funds in different proportions in both debt and equity.
All about HDFC hybrid equity fund:
The HDFC hybrid equity belongs to the HDFC mutual fund. The scheme is based on a balanced equity fund. The main goal of the scheme is to draw appreciation of wealth from the coming future along with the present daily income. Here one can achieve the generated capital and appreciation of wealth after investing in equity and fixed revenue instrument. On the whole, this particular scheme intends to invest in both the capital market and debts.
Brief on the introduction of HDFC hybrid equity fund:
Well initially HDFC was operating on two schemes one is the HDFC premium multi-cap fund and the other was the HDFC balanced fund. These two aforesaid schemes merged together to give rise to an innovative scheme known as the HDFC hybrid equity fund.
The strategy followed to manage the HDFC hybrid equity fund:
Remember that about 65 to 80% of the refereed portfolio will be invested in both equity and assets related to equity. The ultimate effort will be to prepare the portfolio of those companies which have below said qualities.
- Sound and satisfactory prospect for growth
- Great financial capacity
- Well maintained business type
- The reasonable valuation that renders possible appreciation of the wealth
Notable features of the HDFC hybrid:
- The most remarkable feature of the HDFC hybrid equity fund is that it is congenially designed for individuals who want to have both wealth appreciation as well as fixed regular revenue.
- As the HDFC equity hybrid fund is a scheme that belongs to the balanced fund where the investment pertaining to debt and equity may change over time.
- It is considered one of the good sources of investments for both long and medium term.
- The best part of the scheme is that the HDFC hybrid fund is said to facilitate decent return on the investment.
- Now coming to the growth rate annually it is quite impressive as it is leading the scenario. In fact, as per statistics until the date, it has offered about 12.5% growth rates in a yearly wise.
- The risk measure of the HDFC equity fund is quite less compared to some other potential investments.
- One more thing you would notice that the portfolio manager actually diversifies the stock holdings into different sectors. Now, this measure is taken to assure that individuals don’t have to bear any risk.
- In fact, the portfolio manager assures that the diversification will be done methodically. Suppose he includes the stock holdings of varied sectors ranging from banking, IT to pharmaceutical. Now such proportions are made to make sure that if one of the sectors runs through a loss, then the individual will have a fair gain from the other sector.
Advantages of the HDFC hybrid equity fund:
- The first pros of the HDFC hybrid equity fund are that here you will get the opportunity to have the investment for three to five years.
- Obviously, the investor will get a satisfactory return as the CGAR is 12%.
- If you compare the other scheme, this particular scheme from HDFC is the third largest which fruitfully deals with the capital Rs 21,231 crores.
Level of risk:
Well considering the level of risk associated with the fund, you will see that it belongs to the category of moderately high risk.
As per the norm of the HDFC bank, if you want to redeem the amount then you have notified the bank before ten business days. And also note that the minimum redemption price is Rs 500.
Detail about entry and exit:
Just make a note that if about 15% of the amount is invested in excess, then about 1% will be cut as redemption within a year only.
Highlight on the HDFC hybrid equity fund growth:
The HDFC hybrid equity fund growth actually describes the return received after a certain period of time say three to five years. Now the displayed funds follow a different course of return depending on the composition of the asset.
Other details on the HDFC hybrid equity fund growth:
The equity holds about 69.94% while the debt is 26.8% and others are having 3.26%. In addition to that, the foreign equity holdings and F and O equity holding accounts to 0.00%.
Synopsis of the portfolio:
HDFC holds about 58 number of stocks. The weight of the topmost 5 stocks is 25.69%. While the weight of the topmost 10 stocks is 38.37% and the weight of the best three sectors is 34.94%.
List of top ten portfolios of stock holdings:
- HDFC bank ltd
- Infosys Ltd
- Larsen and Toubro Ltd
- ITC Ltd
- Axis bank ltd
- State bank of India
- Aurobindo Pharma Ltd
- ITC Ltd
- Reliance Industries Ltd
- Housing development finance corporation ltd
Thus, this was the detailed overview of the HDFC hybrid equity fund