HDFC Mutual Funds Ultra Short Term Fund has opened for subscription from September 18, 2018, and will close on September 24, 2018. The NFO (New Fund Offer) price for the scheme is 10 Rupees per unit.
The investment objective of the HDFC Ultra Short Term Fund is to generate income/ capital appreciation by investing in debt instruments and money market securities. The scheme invests in securities such that the Macaulay Duration of the portfolio is between 3 months and 6 months.
The open-ended ultra-short term debt scheme offers both Regular and Direct Plans. Both the Plans offer Dividend Option and Growth Option. The Dividend Option offers the sub-options of Daily Dividend (Reinvestment), Weekly Dividend (Payout & Reinvestment) and Monthly Dividend (Payout & Reinvestment).
HDFC Ultra Short Term Fund will invest up to 100 percent of its assets in debt (including securitized debt) securities and money market securities with low to medium risk profile. The scheme will further invest up to 10 percent of its assets in Units issued REITs and InvITs with medium to high-risk profile.
The minimum application amount for the HDFC Mutual Funds Ultra Short Term Fund is 5000 Rupees and in multiples of 10 Rupees thereafter. The minimum additional purchase amount for the scheme is 1000 Rupees and in multiple of 10 Rupees thereafter.
The HDFC Ultra Short Term Fund aims to gather a minimum subscription amount of about 20 crore Rupees during the NFO period. The scheme offers no exit load charge.
The open-ended ultra-short term debt scheme of the fund house is benchmarked against CRISIL Ultra Short Term Debt Index. HDFC Mutual Funds has appointed Mr. Anil Bamboli as the fund manager of the scheme, according to KJMC.
Mr. Bamboli, the fund manager of HDFC Mutual Funds Ultra Short Term Fund, joined HDFC AMC on July 25, 2003. He is a Senior Fund Manager of Fixed Income at the firm. Before joining the fund house, he worked as an Assistant Vice President at SBI Funds Management Pvt. Ltd. He has widespread experience in fund management, research, and fixed income dealing. He is a CFA (Chartered Financial Analyst) and also holds an M.M.S (Finance) degree and a B.Com degree, according to Bloomberg.[The views and opinions expressed in this article are those of the authors and do not necessarily reflect the views and/or the official policy of the website. ]