HDFC Ultra Short Term Fund
How often do we come across our friends/ relatives who have planned a vacation or other similar short term financial goal over the next 5-6 months but end up short of funds at the eleventh hour. Well, there are quite a few people who end up in such a situation at the last moment and fail to meet their financial goal. One way of avoiding this predicament is by investing in Ultra Short Term Debt schemes. Ultra short term funds are open ended schemes that invest in debt and money market instruments such that Macaulay duration* of portfolio is between 3-6 months.
Within Ultra Short Term Debt schemes, investors can consider HDFC Ultra Short Term Fund (“the Scheme”), which was launched in Sep’18. In ~ 15 months, the scheme has grown its AUM to Rs 9,581 Cr as of 31st January 2020. The Scheme has a high quality portfolio with 100% of its Net Assets in AAA & equivalents and balance in cash/ cash equivalents as of January 31, 2020. The Scheme has a modified duration of 163 days as of Jan’20. Low modified duration reduces sensitivity of portfolio to changes in interest rates, thereby reducing volatility of returns. The Scheme has a portfolio yield (YTM) of 6.08% # as of Jan’20.
HDFC Ultra Short Term Fund can be considered by investors desiring a high degree of liquidity and lower interest rate risk with an investment horizon of 2-6 months. Further, investors can invest in this Scheme with an objective of meeting their short term financial goals. HDFC Ultra Short Term Fund provides viable investment avenue for investors looking to transfer funds systematically into equity schemes. Here, investors can invest lumpsum in HDFC Ultra Short Term Fund and transfer funds to equity schemes through STP (systematic transfer plan) route.
* Refer Page 34 of Scheme Information Document for details.
#Past performance may or may not be sustained in future. There is no assurance or guarantee of returns.
For complete portfolio details, refer www.hdfcfund.com Stocks/Sectors referred above are illustrative and not recommended by HDFC Mutual Fund / AMC. The Fund may or may not have any present or future positions in these sectors. The views are not an investment advice. Please seek professional advice before taking any investment decisions.
MUTUAL FUND INVESTMENTS ARE SUBJECT TO MARKET RISKS, READ ALL SCHEME RELATED DOCUMENTS CAREFULLY.