Hunting for an asset management company (AMC) that has provided good returns to the investors? Your search ends with HDFC Mutual Fund, which has been in the business of asset management for years. With a wide range of funds that can attain different financial goals of an investor, HDFC MF stands high and strong in comparison to its competitors.
So, if you are aiming for long-term goals like the purchase of a home, education, marriage and others, you can choose HDFC Equity Fund to accomplish the same.
HDFC MF offers a plethora of equity funds to your liking. However, these funds do carry a higher degree of risk. So, you need to possess a higher risk-taking ability before choosing the equity funds of the AMC. Let’s discuss the structure of HDFC equity funds and their respective roles for the investors.
Types of HDFC Equity Funds
HDFC Equity Fund
The open-ended growth scheme, incepted in 1995, aims for long-term capital appreciation. You can avail either growth or dividend option of the scheme. So, even if you invest in this scheme via an SIP or Lump Sum, you won’t have to pay any entry load. A 1% exit load, however, will be applicable on selling the equity funds before a year of allotment. But if you do the same after a year, no exit load will be applicable. The minimum application amount is ₹5,000 for new investors, while ₹1,000 will be applicable to the existing ones. You can opt for an SIP with a monthly and quarterly frequency of ₹500 and 1,500, respectively. The expense ratio of the scheme can range from 1.30%-2.05%.
HDFC Top 200 Fund
The open-ended scheme aims for long-term capital appreciation by investing in equity and equity-related instruments of companies listed in BSE 200 Index. Available in dividend and growth options, the fund comes with a zero entry load. An exit load of 1% will be charged on redeeming the fund units within a year of the allotment. No such charge will apply on selling the MF units of the scheme after a year of the allotment. Be ready to pay a minimum amount of ₹5,000 to subscribe to the scheme if you are a new investor. Existing investors, on the other hand, can subscribe with ₹1,000. The expense ratio ranges from 1.35%-2.10%.
HDFC Mid-Cap Opportunities Fund
An open-ended equity scheme, the fund invests mainly in various Mid-Cap and Small-Cap stocks to ensure capital appreciation for the investors over the long-term. Both dividend and growth options are available for the investors to choose from. The investment in an SIP can be done at a minimum amount of ₹500 (Monthly) and ₹1,500 (Quarterly). Entry load is NIL, while a 1% exit load will apply on the redemption of the units before a year of the allotment.
You won’t be paying any exit load on redeeming the units after a year. Want to know the application fee of the scheme? Well, the minimum amount stipulated is ₹5,000 for new investors and ₹1,000 for existing investors. The expense ratio of the scheme can be anywhere between 1.30%-2.23%.
HDFC Tax Saver (ELSS)
The open-ended scheme, in addition to offering the potential of capital appreciation over the long-term, saves taxes for the investors. So, from your annual gross income, a maximum tax deduction of upto ₹1.5 lakh can be made each year. The tax deduction, however, will be applicable to the amount of investment made in a particular year.
The scheme, available in both dividend and growth options, has a lock-in period of 3 years. The minimum amount required to subscribe for the scheme is ₹500. No entry load is applicable. The expense ratio of this scheme can be 1.60%-2.17%.
HDFC Infrastructure Fund
The scheme seeks capital appreciation by investing mainly in equity and equity-related securities of the companies engaged in or can benefit from the development of infrastructure. Like many equity funds, it also offers growth and dividend options.
The minimum application amount sought is ₹5,000 and ₹1,000 for new and existing investors, respectively. There is no entry load applicable to the scheme. However, an exit load of 1% will be charged on redemption of fund units before a year of holding the investment. If you sell the units at an opportune time after a year, you would be free of exit loads. The fund has an expense ratio of 1.50%-2.18%.
And so, there are many equity funds of HDFC mutual fund that you would like to subscribe. The basic features of HDFC equity funds are mostly the same. You can not only build the capital over time but can also receive dividends on the investment. An ELSS is also there for those looking to save taxes besides capital appreciation.
Disclaimer – Mutual Funds are subject to market risks. Please read the scheme related documents carefully before investing.