Skip to main content

Mutual Fund Review: HDFC Cash Management Fund

 

THE HDFC Cash Management Fund - Treasury Advantage Plan is being managed by Anil Bamboli since September 2007, and has assets, under management, of 16,776 crore as of May 2011. The fund has been ranked CRISIL mutual fund rank one (top 10 percentile) in the ultra-short term funds category for the past eight quarters, showing superior performance along with good portfolio management. Liquid and ultra short-term funds seek capital preservation coupled with low risk. These funds are attractive during a rising interest rate regime due to their investments in low-duration investments. Portfolio maturity is directly correlated to interest rate sensitivity. Ultra-short term funds have a portfolio maturity above liquid funds (91 days) and extend up to about one year.

While returns are important in choosing an ultra-short term fund, investors should also look at portfolio-based parameters, as the returns differential between funds in the category is low (two per cent measured over one year). Hence, in the CRISIL mutual fund ranking criteria, a weightage of close to 50 per cent is allocated to portfolio-based attributes.

The fund has outperformed both its peers and the benchmark (CRISIL liquid fund index) across longer time frames, i.e., one, two and five years. CRISIL's analysis, however, reveals the fund's probability of returns below the risk-free rate (downside risk probability or DRP) has been low in relation to category peers over the past year.

The fund has maintained high credit quality in its portfolio. Over the past year, P1+/AAA and equivalent, treasury bills and net receivables account for 99 per cent of the fund's portfolio.

On the average maturity front, the fund has maintained a lower average maturity as compared to its peers over the past year, indicating low interest rate risk in the portfolio. Liquidity is also in assessing ultra-short term funds. Illiquid securities hinder the fund's ability to liquidate the portfolio during heavy redemptions. The fund ranks first in its category on the liquidity parameter. Ultra-short term funds can provide agood avenue to retail investors with a short term investment horizon and an objective of higher returns in relation to liquid funds and savings fund deposits. However, the retail investors should look at both returns and portfolio parameters while selecting ultra-short term funds.

 

-----------------------------------------------------------------

 

Also, know how to buy mutual funds online:

 

1) DSP BlackRock Mutual Funds:

http://prajnacapital.blogspot.com/2011/05/buying-dsp-blackrock-mutual-funds.html

 

2) Reliance Mutual Funds:

http://prajnacapital.blogspot.com/2011/06/buying-reliance-mutual-funds-online.html

 

3) Birla Sunlife Mutual Funds:

http://prajnacapital.blogspot.com/2011/06/buying-birla-sunlife-mutual-funds.html

 

4) UTI Mutual Funds:

http://prajnacapital.blogspot.com/2011/06/buying-uti-mutual-funds-online.html

  

5) SBI Mutual Funds:

http://prajnacapital.blogspot.com/2011/06/buying-sbi-mutual-funds-online.html

 

6) Edelweiss Mutual Funds:

http://prajnacapital.blogspot.com/2011/06/buying-edelweiss-mutual-funds-online.html

 

7) IDFC Mutual Funds:

http://prajnacapital.blogspot.com/2011/06/buying-idfc-mutual-funds-online.html

 

Popular posts from this blog

SBI Magnum Tax Gain Scheme 1993 Applcation Form

    https://sites.google.com/site/mutualfundapplications/tax-saving-mutual-funds-elss     Investment Details Basics Min Investment (Rs) 500 Subsequent Investment (Rs) 500 Min Withdrawal (Rs) -- Min Balance -- Pricing Method Forward Purchase Cut-off Time (hrs) 15 Redemption Cut-off Time (hrs) 15 Redemption Time (days) -- Lock-in 1095 days Cheque Writing -- Systematic Investment Plan SIP Yes Initial Investment (Rs) -- Additional Investment (Rs) 500 No of Cheques 12 Note Monthly investment of Rs 1000 for 6 months and quarterly investment of Rs 1500 for 4 quarters.
Read more

Impact of Demonetisation

The government's move to demonetise `500 and `1,000 currency notes will immediately impact reserve money and money supply in the system along with the balance sheet of the Reserve Bank of India, the sole authority in the country for accepting currency notes and coins as legal tender. ET explains the interplay of currency, reserve money and money supply. 1. What is currency in circulation? It is the total value of currency (coins and paper currency) that has ever been issued by the central bank minus the amount that has been withdrawn by it. Currency in circulation comprises currency notes and coins with the public and cash in hand with banks. It is a major liability component of a central bank's balance sheet. 2. What is reserve money? It is essentially the central bank's money . It is also called high-powered money , base money and central bank money . As per the definition, reserve money equals currency in circulation plus bankers' deposits
Read more

Birla Sun Life Tax Plan Online

Invest Birla Sun Life Tax Plan Online   An Open-ended Equity Linked Savings Scheme (ELSS) with the objective to achieve long-term growth of capital along with income tax relief for investment.   After a bad patch from 2008 to 2010, Birla Sun Life Tax Plan has made a big comeback in the last five years, with a particularly good run since 2014. The fund's rankings, which had slipped to two stars in 2011-12, recovered sharply to three-four stars in the last three years. The fund has delivered a particularly large outperformance over its benchmark and peers in the last couple of years. The fund's investment strategy focuses on a diversified and high-quality portfolio, with parameters such as capital ratios and balance-sheet strength used to judge quality. It uses a combination of top-down and bottom-up approaches to take sector/stock positions. The fund avoids highly leveraged plays. Staying more or less fully invested at all times, the fund parks roughly half of its portfoli
Read more

Should you Roll Over 1 year Fixed Maturity Plans?

The period between January and March typically sees an uptick in the launch of fixed maturity plans, or FMPs. Not this year. Instead, fund houses are busy rolling over or extending the tenure of their one- year FMPs launched last year to three years. Investors in one- year FMPs have a choice. Either redeem units or roll over to three years. If you exit now, your gains will be added to your income and taxed in line with your individual slab rate of 10, 20 or 30 per cent. If you stay invested for two more years, you pay 20 per cent tax with indexation benefit. Yields have softened in the past few months on expectations of a rate cut. If the central bank continues its soft monetary stance, yields are likely to fall further. In such a scenario, it makes sense for investors, particularly those in the 30 per cent tax bracket, to roll over their investments and lock in at a higher yield now. In a surprise move, the Reserve Bank of India cut repo rate by 25 basis
Read more

Max Life Monthly Income Advantage Plan

Money back policies are highly expensive, they mostly don't offer adequate insurance cover and they don't offer good returns Max Life Monthly Income Advantage Plan is a traditional money back policy. Money back policies are similar to endowment insurance plans where the policy provides for partial survival benefits during the term of the policy. These type of products are expensive, they mostly fail to offer adequate insurance cover and they don't offer good returns. What the agent has told you isn't correct. In this policy, the money back is in the form of regular income after completion of 10 years. At the end of premium paying term, you will get a guaranteed monthly income for 10 years which will be 1/12th of 10 percent of the sum assured.  So for instance, if your sum assured is R 10 Lakhs, then the guaranteed monthly income will be R 8333 (100000/12). The reversionary and terminal bonuses mentioned are not guaranteed. You will pay a very high pr
Read more
Related Posts Plugin for WordPress, Blogger...
Invest in Tax Saving Mutual Funds Download Any Applications
Transact Mutual Funds Online Invest Online
Buy Gold Mutual Funds Invest Now