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HDFC Short Term Plan

HDFC Short Term Plan

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Published by Abhishek Chandra

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Published by: Abhishek Chandra on Sep 03, 2010
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Presenting HDFC Short Term Plan

(An Open - Ended Income Scheme)

Table of Contents
Product Rationale and Positioning Investment Strategy Portfolio Composition Product Features and Assert Allocation Pattern Fund Suitability and Rating Disclaimer

Product Rationale Structured as an open-ended income scheme with the objective to generate regular income through investments in debt securities and money market instruments with short to medium term maturity Positioned between the liquid fund and the income fund with respect to the risk return matrix .

Positioning of the Short Term Plan RETURN Gilt Funds Income Funds Short Term Plans Ultra Short Term Funds Liquid Funds RISK .

Investment Strategy .

12 to 30 months Predominantly invest in high quality corporate bonds which have a lower market volatility Investment in floating rate securities would be considered in order to mitigate interest rate risks Leverage on credit pricing inefficiencies between high credit bonds / securitised assets Controlled exposure to G–Secs Maintaining a high quality portfolio .Investment Strategy Focus would be on current yield with an average maturity of approx.

Portfolio Composition (As on December 31. 2009) .

06 Commercial Papers (CP) / Certificate of Deposit (CD) 31. Cash Equivalents and Net Current Assets Average Portfolio Maturity – 1.Portfolio Composition (As on December 31. 2009) Portfolio Classification by Asset Class (%) Government Securities 1. In crores) – 2.24 Years Modified Duration: 1.06 Net Assets (Rs.29 .55 Credit Exposures 58.10 Cash.59 9.639.

Cash Equivalents and Net Current Assets 4.06 AAA / AAA(SO) / P1+ / P1+(SO) & Equivalent 88.88 Cash.Portfolio Composition (As on December 31.65 AA+ / LAA+ & Below 5.41 . 2009) Portfolio Classification by Rating Class (%) Sovereign 1.

50% is payable if units are redeemed / switched-out within 3 months from the date of allotment. Anil Bamboli (since January 13.Product Features Type of Scheme Inception Date Investment Objective Investment Plan / Options An Open-ended Income Scheme February 28.000 and any amount thereafter Entry Load: Not Applicable Pursuant to SEBI circular no.4/ 168230/09 dated June 30. Exit Load In respect of each purchase / switch-in of units. 1. *25th of every month (or immediately succeeding Business Day if that day is not a Business Day) Purchase: Rs. Upfront commission shall be paid directly by the investor to the ARN Holder (AMFI registered Distributor) based on the investors’ assessment of various factors including the service rendered by the ARN Holder. 2002 To generate regular income through investments in Debt Securities and Money Market Instruments Growth Option and Dividend Option (Monthly*) Dividend Option offers Payout and Reinvestment facility. SEBI/IMD/CIR No. No exit load is payable if units are redeemed / switched-out after 3 months from the date of allotment. no entry load will be charged by the Scheme to the investor. 2004) CRISIL Short Term Bond Fund Index Minimum Application Amount Load Structure Fund Manager $ Benchmark $ Dedicated Fund Manager for Overseas Investments: Anand Laddha . 5. an exit load of 0.000 and any amount thereafter Additional Purchase: Rs. 2009.

2003 till Date HDFC Asset Management Company Limited May 1994 – July 2003 SBI Funds Management Pvt. Ltd. Com Grad CWA MMS (Finance) CFA – CFA Institute USA Experience Collectively over 14 year of experience in Fund Management and Research Assignments Held July 25.Fixed Income Educational Qualifications B. Vice President .Fund Manager’s Profile Name and Designation Mr. Anil Bamboli – Senior Fund Manager . Last Position Held – Asst.

.Asset Allocation Pattern Under normal circumstances. normally. 1996. 50% of net assets) based on the opportunities available subject to SEBI (Mutual Funds) Regulations. In addition to the securities stated in the table above. the scheme may enter into repos / reverse repos in the securities that it will invest in as may be permitted by the RBI.33 Low to Medium Money Market Instruments 40 Upto 50 Low It is the intention of the scheme that the investments in securitised debts will not. The scheme may seek investment opportunity in Foreign Debt Securities (max. 50% of net assets) subject to SEBI (Mutual Funds) Regulations. exceed 60% of the Net Assets of the Scheme. the asset allocation (% of net assets) of the Scheme’s portfolio will be as follows: Types of Instruments Normal Allocation (% of Net Assets) Normal Deviation Risk Profile Debt Securities 60 Upto 33. 1996. The scheme may use derivatives mainly for the purpose of hedging and portfolio balancing (max.

education cess @ 2% and secondary and higher education cess @ 1% Investors should be aware that the fiscal rules / tax laws may be changed and there can be no guarantee that the current tax position may continue indefinately In view of the individual nature of tax consequences. 1961.1625 22. additional income tax is payable under section 115 R of the Income tax Act. each investor is advised to consult his / her professional tax advisor . at the following rates: Category of Investors Individuals / HUF Others Dividend Distribution Tax (%) $ 14.66 $ Inclusive of surcharge @ 10%.Tax benefits / consequences HDFC Short Term Plan (the “Scheme”) is classified as an ‘Income Scheme’ and hence is not impacted by the increase in DDT applicable for ‘Liquid Schemes / Money Market Mutual Funds’ Income distributed by the Scheme will be exempt from Income-tax in the hands of investors On income distribution if any made by the Scheme.

Fund Suitability and Rating .

Why HDFC Short Term Plan? Ideal investment vehicle in a less volatile interest rate environment Maintains a high quality portfolio Moderate MTM and interest rate risk Emphasis on ‘Risk adjusted returns’ .

HDFC Short Term Plan is suitable for investors: With an investment horizon of short to medium term Willing to tolerate moderate MTM and interest rate risk in return for potentially higher returns in comparison to liquid funds .

Please refer to the last slide on rating methodology. .Fund Rating HDFC Short Term Plan has been assigned ‘Credit Risk Rating mfAAA’ by ICRA Limited – Highest credit-quality rating assigned by ICRA to debt funds Past performance is no guarantee of future results.

performance or events to differ materially from those expressed or implied in such statements.DISCLAIMER: This presentation has been prepared and issued on the basis of internal data. or the person responsible for delivering it to the addressee. any disclosure. publicly available information and other sources believed to be reliable. distribution or any action taken or omitted to be taken in reliance on it is prohibited and may be unlawful. The recipient alone shall be fully responsible / liable for any decision taken on the basis of this presentation. It should not be construed as investment advice to any party. The information/ data herein alone is not sufficient and shouldn’t be used for the development or implementation of an investment strategy. The information contained in this document is for general purposes only and not a complete disclosure of every material fact and terms and conditions and features of HDFC Short Term Plan. . copying. If you are not the addressee. The statements contained herein may include statements of future expectations and other forward-looking statements that are based on our current views and assumptions and involve known and unknown risks and uncertainties that could cause actual results. No part of this document may be duplicated in whole or in part in any form and/or redistributed without prior written consent of the HDFC Mutual Fund/ HDFC Asset Management Company Limited. The recipient(s) should before investing in the Scheme(s) make his/their own investigation and seek appropriate professional advice. The content of this presentation is confidential and intended solely for the use of the addressee.

settlement periods. Please read the Scheme Information Document and Statement of Additional Information before investing. The Rating should not be construed as an indication of the performance of the Scheme or of volatility of its return. The NAV will inter-alia be exposed to Price / Interest Rate Risk and Credit Risk. does not assume any responsibility on its part. No Exit Load is payable if Units are redeemed / switched-out after 3 months from the date of allotment. ICRA Ltd. (an open ended income scheme) is only the name of the Scheme and does not in any manner indicate either the quality of the scheme. Asset Allocation: Debt Securities: 60%. should not be treated as a recommendation to buy. ICRA reserves the right to suspend. Risk Factors: All mutual funds and securities investments are subject to market risks and there can be no assurance that the Scheme objectives will be achieved and the NAV of the Scheme may go up or down depending upon the factors and forces affecting the securities market. Statutory Details: HDFC Mutual Fund has been set up as a trust sponsored by Housing Development Finance Corporation Limited and Standard Life Investments Limited (liability restricted to their contribution of Rs. which ICRA believes. The NAV of the units issued under the Scheme may be affected.ICRA Rating Disclaimer: The rating assigned by ICRA Ltd. Investors in the Scheme are not being offered any guaranteed / assured returns. may have an impact on the rating assigned to the Scheme. withdraw or revise the rating at any time on the basis of new information or unavailability of information or such circumstances. no entry load will be charged by the Scheme to the investor. inter-alia by changes in the interest rates. for any liability. 60% of the net assets. Upfront commission shall be paid directly by the investor to the ARN Holder (AMFI registered Distributor) based on the investors’ assessment of various factors including the service rendered by the ARN Holder. Investment in Securitised Debt: Max. an Exit Load of 0. 1882) and with HDFC Asset Management Company Limited as the Investment Manager. There is no assurance or guarantee to unit holders as to the rate of dividend distribution nor that dividends will be paid regularly.50% is payable if Units are redeemed / switched-out within 3 months from the date of allotment. Exit Load: In respect of each purchase / switch-in of Units. transfer procedures and performance of individual securities. its future prospects and returns. Past performance of the Sponsors and their affiliates / AMC / Mutual Fund and its Scheme(s) do not indicate the future performance of the Scheme of the Mutual Fund. 2009. . Pursuant to SEBI circular no. Investment Objective: The objective of the scheme is to generate regular income through investment in debt securities and money market instruments.4/ 168230/09 dated June 30. Money Market Instruments: 40%. SEBI/IMD/CIR No. Load Structure: Entry Load: Not Applicable. HDFC Short Term Plan. 1 lakh each to the corpus) with HDFC Trustee Company Limited as the Trustee (Trustee under the Indian Trusts Act. that may arise consequent to HDFC Mutual Fund not complying with any guidelines or directives issued by SEBI or any other mutual fund regulatory body. trading volumes. sell or hold the units issued by the Scheme.


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