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One of India’s largest mutual fund houses, HDFC Mutual Fund, has Rs 4,23,716 crore assets under management. The company was started in 1999 as a joint venture between HDFC Limited and abrdn Investment Management Limited and became a publicly listed entity in August 2018.
The fund house has a strong position in equity investments and holds 11% of the industry AUM. It has a retail and institutional customer base of 9.9 million live accounts as of 31st March 2022.
- HDFC Mutual Fund offers approximately 89 primary schemes.
- Of the 89 schemes, 52 are debt funds, 22 are equity-oriented, 6 are hybrid schemes, and 9 others (ETFs, Gold, FoFs, etc.).
- The company’s vision: To be the most respected Asset Manager in the world, and the mission is to be the wealth creator for every Indian.
- They have an investment team of 29 highly competent members with a consistent track record of performance, stability, and business understanding.
- The company has a network of customers and investment partners across 200 cities.
How To Invest In HDFC Mutual Funds?
- Through the HDFC Mutual Fund’s website
- Through a distributor
Which HDFC Mutual Fund scheme is best for the short term?
Generally, the short term refers to an investment tenure of up to three years. For such an investment horizon, you should consider debt funds. When investing in debt funds, investors should match their investment horizon with the average portfolio maturity of the fund. For example, they can consider overnight funds if the investment is for a few days. For investment up to three months, liquid funds are suitable. Low-duration funds are mandated to hold instruments with an average maturity of six to 12 months. And short-duration funds hold securities that mature between one and three years.
Are HDFC Mutual Fund schemes Tax-Free?
Investing in any mutual fund comes with capital gains tax in the long and short term. It depends on the type of fund you invest in and the investment period.
|Mutual Fund Type||Holding Period||Type of Capital Gains Tax||Tax Liability|
|Debt-oriented funds||Less than 36 months||Short term capital gains||As per the investor’s income tax slab rate|
|Equity-oriented funds||Less than 12 months||Short term capital gains||15%|
|Debt-oriented funds||Greater than 36 months||Long term capital gains||20% with indexation|
|Equity-oriented funds||Greater than 12 months||Long term capital gains||10% for amounts exceeding Rs 1 lakh|
How Can I increase the SIP amount of the HDFC mutual fund scheme?
There are two ways to increase the SIP amount of the HDFC mutual fund scheme. When starting your investments, you choose the top-up SIP option. The option lets you automatically increase the SIP amount by a predefined percentage (say 25%) or amount (say Rs 2,000) at regular intervals, like quarterly or annually. If you have not done that, the other option is to start a new SIP in the same fund to increase the investment amount.