HDFC Prudence Fund

This is an open ended balanced mutual fund scheme.

Investment objective

The objective here is to offer capital appreciation and periodic returns over the long term with the aim to minimize capital erosion.

Fund information

Inception date	01/02/1994
CRISIL rank	Rank 4 out of 5
Schemes	Direct Plan – Growth Option Direct Plan – Dividend Option Growth Option Dividend Option
Entry load	0%
Exit load	1% if redeemed within 1 year
Minimum investment	Rs.5,000 for new investors Rs1,000 for existing investors
SIP	Minimum Rs.500 for monthly subscription Min. Rs.1,500 for quarterly subscription
Product label – Risk and target investors	Moderately high risk. Meant for investors looking for periodic returns in a balanced fund with long term capital growth.
Benchmark	CRISIL Balanced Fund Index. This benchmark is primarily used to track performance of equity-oriented balanced mutual funds. The index has a blend of CNX Nifty Index (65%) and CRISIL Bond Fund Index (35%).
SWP	Yes. Available in Fixed and Variable variants. Frequency of withdrawals are monthly, quarterly half yearly and yearly for Fixed SWP and quarterly, half yearly and yearly for Variable SWP.
STP	Yes. Available in two variants namely Fixed Systematic Transfer Plan (FSTP) and Capital Appreciation Systematic Transfer Plan (CASTP). Daily, Weekly, Monthly and quarterly transfer plans are available.
Redemption	3-4 days
Taxation (on investment and on redemption)	As per applicable sections under the Income Tax Act.

Portfolio – Sector / Top 10 holdings*

Name	Sector	Class	Allocation (%)
Infosys Ltd	Tech	Equity	5.53
State Bank of India	Financial	Equity	5.32
ICICI Bank Ltd	Financial	Equity	5.26
Larsen & Toubro Ltd	Diversified	Equity	4.95
8.3% GOI 2042	Sovereign	Central Govt. Loan	4.22
Maruti Suzuki India Ltd	Auto	Equity	3.11
Aarti Industries Ltd	Chemicals	Equity	3.09
Aurobindo Pharma Ltd	Healthcare	Equity	2.42
8.97% GOI 2030	Sovereign	Central Govt. Loan	2.26
Bharti Airtel Ltd	Telecom	Equity	2.24

 

*As on 2nd Sept 2015

Risk measures

Standard Deviation	16.37
Sharpe Ratio	0.84
Alpha	5.79%
Beta	1.24

 

Performance*

AUM	Rs.8,711 crores (Growth)
NAV	Direct Plan – Dividend Option: Rs.33.9060 Direct Plan – Growth option: Rs.366.5450 Dividend Option: Rs.30.7080 Growth Option: Rs.360.6530
Expense Ratio	2.50% on first Rs.100 crores daily net assets 2.25% on next Rs.300 crores 2.00% on next Rs.300 crores 1.75% on remaining daily net assets

 

*As on 2nd Sept 2015

Benchmark comparison*

Compounded Annualised Returns	Scheme Returns (%)	Benchmark Returns (%)
Returns for last 1 year	17.50	9.37
Returns for last 3 years	18.75	8.13
Returns for last 5 years	17.53	10.59
Returns since inception	21.33	NA

How to apply

Investors and use both online and offline routes to invest in HDFC Prudence Fund.

• OnlineTo invest online, you must register with HDFCMFOnline and generate your personal HPIN. You will get all the forms and documents online to fill and submit. You can use multiple payment avenues to start investing in this fund. You may also approach independent agents however you should be careful when choosing a dealer.
• OfflineYou can approach any HDFC branch servicing mutual fund customers with your details and KYC form to start investing. The branch will provide you with forms and list out the details required from your end, which can then be submitted in the same location. Third party vendors can also be approached for completing the registration process, though you should do a background check first.