Mutual Fund News : HDFC Mutual Fund introduces HDFC Asset Allocator Fund of Funds

Publish Date:

HDFC Mutual Fund has launched HDFC Asset Allocator Fund of Funds.

It is an open-ended fund of funds scheme investing in equity-oriented schemes, debt-oriented schemes and gold ETF of HDFC Mutual Fund.

The primary investment objective of the Scheme is to seek capital appreciation by managing the asset allocation between equity oriented, debt oriented and gold ETF schemes. There is no assurance that the investment objective of the Scheme will be realized.

Under normal circumstances, HDFC Asset Allocator Fund of Funds will hold an allocation of 95% to 100% of its assets in Units of domestic Mutual Fund Schemes. Of this 40% to 80% of its assets will be invested in Equity oriented schemes, and 10% to 50% of its assets in Debt oriented schemes. It will hold 10% to 30% of its assets in Gold ETFs, and 0% to 5% in Debt Securities and Money Market Instruments.

The corpus of the Scheme shall be invested in accordance with the investment objective in any (but not exclusively) of the following securities:

HDFC Asset Allocator Fund of Funds will invest in the schemes of domestic Mutual Funds that invest in various asset classes depending on the asset allocation pattern and Investment Objective of the respective schemes and in gold ETFs.

The Scheme will invest in any of the following category of the schemes:

1. Units of domestic Equity Oriented Schemes;

2. Units of domestic Debt Oriented Schemes;

3. Units of domestic Gold ETF Schemes;

The investments will be primarily done in Equity Oriented Schemes, Debt Oriented Schemes and Gold ETF schemes of HDFC Mutual Fund.

The Scheme will allocate its assets between equity oriented / debt oriented /gold ETF schemes based on prevailing market conditions subject to permissible limits. The Fund Manager will increase exposure to Equity oriented schemes when market valuations are attractive and will prune down the equity exposure by increasing exposure in Debt Oriented or Gold ETF Schemes, when equity markets get expensive or experience volatility or under any other conditions as found suitable by the Fund Manager.

Depending upon the market conditions and in the interest of the investors, the Fund Manager shall decide allocation to various schemes of mutual fund(s), and investments in Debt and Money Market Instruments within the asset allocation limits specified under 'Asset Allocation' section.

HDFC Asset Allocator Fund of Funds’s performance will be benchmarked against 90% NIFTY 50 Hybrid Composite Debt 65:35 Index (Total Returns Index) and 10% Domestic Prices of Gold arrived at based on London Bullion Market Association's (LBMA) AM fixing price.

It will be managed by Mr Amit Ganatra (Equity Assets), Mr Anil Bamboli (Debt Assets) and Mr Krishan Kumar Daga (Gold ETF Schemes).

The NFO opens for subscription on April 16, 2021, and closes on April 30, 2021. The scheme will reopen for continuous Sale and Repurchase within 5 Business Days of allotment of units under NFO.

The fund’s NAV is priced at Rs 10/- per unit during the NFO period. The minimum subscription amount is Rs 5,000 and in multiples of Re 1 thereafter.

The fund offers Regular Plan and Direct Plan having Growth Option and Income Distribution cum Capital Withdrawal (IDCW) Option (Re-investment and Pay-out facilities).