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We live in a society where people leverage on fear. For instance, the news channels earn their bread and butter by making propaganda of the negative news, thus infesting the minds of the viewers with ghastly thoughts. This, in turn, eats their ability to make a fine judgement, and hence they struggle to live a happy life.
The kingdom of mutual fund investing is also not spared by the infiltrations. A rumour about a fund may not only hurt its current value but may also pose several problems in its future growth. Hence, as an initiative to put an end to such negativity, we, at MySIPonline, have endeavored to publish the truest information on the best funds available in the market. This time, we have picked up HDFC Hybrid Equity Fund, a well-known multi-cap fund that recently witnessed some changeovers which are discussed later in this article.
In order to make a superb plan, it is imperative to have knowledge of those funds that are doing well and/or are expected to perform positively in the future. This includes knowing the fund’s inside out, taking into account the past performances, the investment strategy, the distance with the benchmark, and some other areas that may help complete the scan. In this write-up, you’d find all the details about HDFC Hybrid Equity Fund (G) which are necessary to make an investment plan that is powered by your objectives and desires. So, without further ado, let’s begin discussing the vital facts about this fund.
A Brief Introduction
HDFC Hybrid Equity Fund (G), erstwhile HDFC Premier Multi-Cap Fund, is an open-ended, equity-oriented multi-cap fund. It recently absorbed HDFC Balanced Fund, which was a well-known scheme in the balanced category. Its primary objective is to identify the top performing companies in different market segments and invest the sum contributed by the investors to create a large corpus over the long-term. The search for the stocks is based on various parameters that include the company’s profile, the field of occupation, the growth of the industry in which the company is and its parallel success against the benchmark. If the results of the scan are satisfactory, the stocks then get shortlisted for investment and become a part of the portfolio.
How Much Has the Fund Earned in the Past?
In the short-term, the fund wasn’t able to perform satisfactorily and stayed behind the benchmark. However, its long-term performance is an entirely different story. In the last five years, the fund has earned returns to the tune of 15.45% which is a massive improvement achieved during the transit from short-term to long-term investment period. Also, the fund has spewed returns of 13.10% since the time it started its operations in the market.
How Does the Risk Look?
The risk is pretty much a part of every mutual fund, with a difference in intensity and duration. The underlying investment strategy and the stocks that build up the portfolio are the major factors governing the risk of a fund. In case of HDFC Hybrid Equity Fund Growth, the exposure is made to a variety of equity instruments including large cap, mid cap, and small cap funds. Such intra diversification of investments ensures that the risk is maintained at a controlled level and doesn’t unnecessarily hurt the investor’s corpus. Also, the fund has made the highest allocation of its assets to financial and construction industry which are booming in India. Hence, the risk, although present in higher amounts, is kept under control.
A Little about the Exit Load
Unlike the normal circumstances, HDFC Hybrid Equity Fund–Regular Plan (Growth) doesn’t charge a blanket rate of 1% exit load in case of premature redemptions. Instead, the exit load liability is imposed only on the units redeemed in excess of 15% of the investment made on a premature redemption that took place within 365 days.
So, if you want to draw a powerful investment plan that can suffice all your expectations, then you must consider adding HDFC Hybrid Equity Fund on your bucket list. MySIPonline’s 24x7 online support will be a great aid in charting the course to successful investing.