An open ended notified Tax Savings Cum Pension Scheme
Summary
| Type |
An open ended pension fund |
Benchmark Index |
The Benchmark for Investment Plan(s) offered under the Scheme is as follows:
Equity Plan - Nifty 500 Index
Hybrid - Equity Plan - CRISIL Balanced Fund Index
Hybrid - Debt Plan - CRISIL MIP Blended Index |
| Min. investment: |
Rs. 5,000/- |
Plans:
|
HDFC Retirement Savings Fund will offer the investors three Investment Plans to choose from:
(i) Equity Plan,
(ii) Hybrid - Equity Plan, and
(iii) Hybrid - Debt Plan
Each of the Investment Plan(s) will be managed as separate portfolios.
Each Investment Plan offers Regular Plan and Direct Plan. |
| Additional Purchase: |
Rs. 1,000/- |
Eligibility Age: |
The investor having completed 18 years of age is eligible to invest in the Scheme. (A copy of birth certificate, passport copy, etc evidencing date of birth of the First Unit holder should be mandatorily attached with the application)
# Minor through a natural guardian or a court appointed legal guardian would not be eligible to invest in the Scheme. |
| Face Value |
Rs 10 per unit |
Expense Ratio: |
Equity Plan and Hybrid - Equity Plan: Upto 2.50%
Hybrid - Debt Plan: Upto 2.25% |
| Entry Load |
Nil |
Exit Load: |
(Upon completion of lock-in period of 5 years)
- An Exit Load of 1% is payable if Units are redeemed/switched-out before completion of 60 years of age
- No Exit Load is payable if Units are redeemed/switched-out on or after attainment of 60 years of age
|
| Issue Opens |
February 5, 2016 |
Issue Closes: |
February 19, 2016 |
Investment Objective*
The investment objective of the scheme is “to generate a corpus to provide for pension to an investor in the form of income to the extent of the redemption value of their holding after the age of 60 years by investing in a mix of securities comprising of equity, equity related instruments and/or Debt/Money Market Instruments.” There is no assurance that the investment objective of the Scheme will be realized.
*Source: Scheme Information Document
Is this fund for you?
HDFC Retirement Savings Fund (HRSF) is offered by HDFC Mutual Fund to encourage investors to save for their retirement. The scheme will aim to generate a corpus to provide for pension to an investor in the form of income to the extent of the redemption value of their holding after the age of 60 years by investing in a mix of securities comprising of equity, equity related instruments and/or Debt/Money Market instruments.
HDFC Retirement Savings Fund – Equity Plan:
The Equity Plan aims to provide for pension by investing predominantly in equity and equity related instruments. However, it also has flexibility to invest in debt instruments and money market instruments.
The asset allocation of the Equity Plan under normal circumstances:
| Instruments |
Indicative allocations
(% of total assets) |
Risk Profile
High/Medium/Low |
| Minimum |
Maximum |
| Equity & Equity Related Instruments* |
80% |
100% |
Medium to High |
| Debt and Money Market Instruments |
0% |
20% |
Low to Medium |
Equity and Equity related instruments include convertible debentures, equity warrants, convertible preference shares, etc.
*Source: Scheme Information Document
The fund will follow a multi cap investment strategy with a focused approach to long term investing. It will be structured with a view to maximize the growth potential by aiming to invest in companies that are reasonably valued. The high exposure to equity makes the Equity Plan suitable for aggressive investors in the young to middle age group of 18 to 40 years, having high risk appetite and longer time horizon as they have another 20-40 years left to attain the retirement age of 60 years.
HDFC Retirement Savings Fund – Hybrid-Equity Plan:
The Hybrid-Equity Plan aims to provide for pension by investing primarily in Equity and Equity related instruments, along with investment in Debt / Money market instruments with an objective of generating long term returns and maintaining moderate level of risk.
The asset allocation of the Hybrid-Equity Plan under normal circumstances:
| Instruments |
Indicative allocations
(% of total assets) |
Risk Profile
High/Medium/Low |
| Minimum |
Maximum |
| Equity & Equity Related Instruments* |
60% |
80% |
Medium to High |
| Debt and Money Market Instruments |
20% |
40% |
Low to Medium |
Equity and Equity related instruments include convertible debentures, equity warrants, convertible preference shares, etc.
*Source: Scheme Information Document
With a balanced approach, the fund aims to reduce volatility in the portfolio while optimizing returns in line with the primary objective of providing long term returns to investors. Hence the Hybrid-Equity Plan is suitable for moderate risk investors or those in the age group of 41 to 55 years, having moderate to high risk appetite and medium to long term time horizon as they have another 5-19 years left for their retirement until they reach the age of 60 years.
HDFC Retirement Savings Fund – Hybrid-Debt Plan:
The Hybrid-Debt Plan aims to provide for pension by investing predominantly in debt and money market instruments of various maturities & balance in equity and equity related instruments. In this plan, the fund will assess risk of the potential investment in terms of credit risk, interest rate risk and liquidity risk in order to exploit emerging opportunities in the investment universe and manage risks at all points in time.. The moderate equity exposure aims to generate long term gains to provide a kicker to portfolio returns.
The asset allocation of the Hybrid-Equity Plan under normal circumstances:
| Instruments |
Indicative allocations
(% of total assets) |
Risk Profile
High/Medium/Low |
| Minimum |
Maximum |
| Debt and Money Market Instruments |
70% |
95% |
Low to Medium |
| Equity & Equity Related Instruments* |
5% |
30% |
Medium to High |
Equity and Equity related instruments include convertible debentures, equity warrants, convertible preference shares, etc.
*Source: Scheme Information Document
Being more inclined towards debt instruments, the Hybrid-Debt Plan is suitable for conservative investors or those in the age group of 56 to 60 years, having low to medium risk appetite and short to medium term time horizon as they are already on the verge of retirement (at the age of 60 years).
Fund Manager Profile
Mr Chirag Setalvad is is the fund manager for the equity portfolio of the investment plan(s). He has done B.Sc in Business Administration from the University of North Carolina, Chapel Hill. He has over 16 years of experience in the fund management and equity research areas. Prior to joining HDFC AMC, he was associated with New Vernon Advisory Services Pvt. Ltd. and ING Barings N.V., among others.
Mr Setalvad also manages HDFC Balanced Fund, HDFC Children's Gift Fund-Investment, HDFC Mid-Cap Opportunities Fund, HDFC Small and Mid-Cap Fund, HDFC Long Term Advantage Fund and HDFC Capital Builder Fund.
As the past track record for HDFC Retirement Savings Fund is not available we can instead gauge the performance of the fund manager as a reference.
Performance of Equity Oriented Funds Managed by Mr Setalvad:
Data as on February 2, 2015
Returns over 1-Year are compounded annualised
(Source: ACE MF)
It is noteworthy that all the 6 funds managed by the equity fund manager Mr Chirag Setalvad have outperformed their respective benchmark indices under his supervision.
Mr. Shobhit Mehrotra is the fund manager for the debt portfolio of the investment plan(s). Mr Shobhit Mehrotra is the Senior Fund Manager and Head of Credit at HDFC Mutual Fund. Mr Mehrotra is a Bachelor in Textile Engineering and also has to his credit a M.S. MBA from Clemson University, U.S.A. Mr Mehrotra brings with him over 21 years of experience in fixed income markets, credit rating etc. Prior to joining HDFC Mutual Fund in 2004, Mr Mehrotra was associated with Templeton Asset Management (India) Pvt. Ltd. as a Portfolio Manager (Fixed Income) and also had around 4.5 years stint with ICRA Ltd as Investment Analyst.
Mr Mehrotra also manages HDFC MF MIP (Debt portfolio), HDFC Floating Rate Income Fund – LTP and STP, HDFC High Interest Fund-Short Term Plan, HDFC Medium Term Opportunities Fund, HDFC Liquid Fund, HDFC Income Fund and some of the Fixed Maturity Plans.
Fund Outlook
While your investment in the HDFC Retirement Savings Fund will be eligible for availing tax deductions under section 80C of the income tax act of upto 1.5 lakhs p.a., your investment in this fund would be locked in for a minimum period of 5 years (which is more than other tax saving mutual funds i.e. ELSS). On the other hand, the longer term investment commitment from investors, would help the fund take long term investment call on stocks and seek to benefit from long term appreciation in prices. Hence overall performance of this fund would be affected by long term investment environment and macroeconomic variables that impacts both equity and debt markets. However the ability of the fund managers to capitalise on the opportunities prevalent in the markets will decide the fate of this fund. The quality of risk management will also play a crucial role in deciding how the fund performs in future considering the fund’s objective of retirement planning.
DISCLOSURE AS PER SECURITIES AND EXCHANGE BOARD OF INDIA (RESEARCH ANALYSTS) REGULATIONS, 2014
About the Company including business activity
Quantum Information Services Private Limited (QIS) was incorporated on December 19, 1989.
QIS was promoted by Mr. Ajit Dayal with an objective of providing value-based information / views on news related to equity markets, the economy in general, sector analysis, budget review and various personal products and investments options available to the Public. It was the first company to start equity research on an institutional level.
‘PersonalFN' is a service brand of QIS and was started in the year 1999. In 1999, the Company registered the Domain name www.personalfn.com for providing information on mutual funds and personal financial planning, financial markets in general, etc and services related to financial planning and research in various financial instruments including mutual funds, insurance and fixed income products to customers. It offers asset allocation and researched investment recommendations through its financial planning services.
Disciplinary history
There are no outstanding litigations against the Company, it subsidiaries and its Directors.
Terms and condition on which its offer research report
For the terms and condition for research report click here.
Details of associates
- Money Simplified Services Limited;
- PersonalFN Insurance Services India Limited ;
- Equitymaster Agora Research Private Limited;
- Common Sense Living Private Limited;
- Quantum Advisors Private Limited;
- Quantum Asset Management Company Private Limited;
- HelpYourNGO Private Limited;
- HelpYourNGO Foundation;
- QIEF Management LLC, Mauritius
- Natural Streets for Performing Arts Foundation;
- Primary Real Estate Advisors Private Limited;
- Rahul Goel;
- Ajit Dayal;
- I V Subramaniam.
Disclosure with regard to ownership and material conflicts of interest
- Neither QIS, it's Associates, Research Analyst or his/her relative have any financial interest in the subject Company, except QIS receives fees for providing research to Quantum Equity Fund of Fund (QEFoF) which is Fund of Fund scheme managed by QMF and our associates has financial interest in the subject company.
- Neither QIS, it's Associates, Research Analyst or his/her relative have actual/beneficial ownership of one per cent or more securities of the subject Company, at the end of the month immediately preceding the date of publication of the research report.
- Neither QIS, it's Associates, Research Analyst or his/her relative has any other material conflict of interest at the time of publication of the research report except that QIS is, as per SEBI (Mutual Funds) Regulations 1996, an associate / group Company of Quantum Asset Management Company Private Limited and Trustees and Sponsor of Quantum Mutual Fund (QMF) and to that extent there may be conflict of interest while recommending any schemes of QMF. However any such recommendation or reference made is based on the standard evaluation and selection process, which applies uniformly for all Mutual Fund Schemes. The payment of commission (upfront /annualized & trail), if any, for any Schemes by QMF to QIS is also at arm's length and as per prevailing market practices.
Disclosure with regard to receipt of Compensation
- Neither QIS nor it's Associates have any compensation from the subject Company in the past twelve months.
- Neither QIS nor it's Associates have managed or co-managed public offering of securities for the subject Company in the past twelve months.
- Neither QIS nor it's Associates have received any compensation for investment banking or merchant banking or brokerage services from the subject Company in the past twelve months.
- Neither QIS nor it's Associates have received any compensation for products or services other than investment banking or merchant banking or brokerage services from the subject company in the past twelve months.
- Neither QIS nor it's Associates have received any compensation or other benefits from the subject Company or third party in connection with the research report
General disclosure
- The Research Analyst has not served as an officer, director or employee of the subject Company.
- QIS or the Research Analyst has not been engaged in market making activity for the subject Company.
Subject Company means Mutual Fund Schemes
Quantum Information Services Pvt. Ltd. 101, Raheja Chambers, 213, Nariman Point, Mumbai - 400021. Tel: +91 22 6136 1200
Website : www.personalfn.com CIN: U65990MH1989PTC054667
© Quanutm Information Services Pvt. Ltd. All rights reserved.
Any act of copying, reproducing or distributing this newsletter whether wholly or in part, for any purpose without the permission of PersonalFN is strictly prohibited and shall be deemed to be copyright infringement.
Disclaimer: Quantum Information Services Pvt. Limited (PersonalFN) is not providing any investment advice through this service and, does not constitute or is not intended to constitute an offer to buy or sell, or a solicitation to an offer to buy or sell financial products, units or securities. All content and information is provided on an 'As Is' basis by PersonalFN. Information herein is believed to be reliable but PersonalFN does not warrant its completeness or accuracy and expressly disclaims all warranties and conditions of any kind, whether express or implied. PersonalFN and its subsidiaries / affiliates / sponsors or employees, personnel, directors will not be responsible for any direct / indirect loss or liability incurred by the user as a consequence of him or any other person on his behalf taking any investment decisions based on the contents and information provided herein. This is not a specific advisory service to meet the requirements of a specific client. Use of this information is at the user's own risk. The user must make his own investment decisions based on his specific investment objective and financial position and using such independent advisors as he believes necessary. All intellectual property rights emerging from this newsletter are and shall remain with PersonalFN. This is for your personal use and you shall not resell, copy, or redistribute this newsletter or any part of it, or use it for any commercial purpose. The performance data quoted represents past performance and does not guarantee future results. As a condition to accessing PersonalFN's content and website, you agree to our Terms and Conditions of Use, available here.
Quantum Information Services Pvt. Ltd. 101, Raheja Chambers, 213, Nariman Point, Mumbai - 400021. Tel: +91 22 6136 1200
Website : www.personalfn.com CIN: U65990MH1989PTC054667
Add Comments