Skip to main content

Mutual Fund Review: HDFC MIP – LTP

Type: Open – Ended Debt – MIP
Fund Manager: Mr. Prashant Jain (Equity), Mr Shabbir Kapasi (Debt)
Inception Date: Decemebr 26, 2003

Unlike the conventional monthly income plans in the markets HDFC MIP - LTP is a balance of debt and equity instruments. It invests a minimum of 75% in debt instrument and up to 25% in equities ensuring the scheme has the stability of debt as well as the extra performance potential of equities. The equity exposure gives HDFC MIP - LTP the potential to deliver higher returns over a period of time, in comparison to pure debt scheme. The scheme has benchmarked it self against CRISIL MIP Blended Index.

The primary objective of the scheme is to generate regular returns through investment primarily in debt and money market instruments and to generate long term capital appreciation by investing a portion of the scheme's asset in equity and equity related securities. As on December 06 the fund has invested 24.86% of its asset in equity, 42.07% in debt and 33.07% in cash & equivalent. The fund manager has stuck to the aggressive asset allocation pattern of the scheme; its average asset allocation for the year 2006 has been 24.30% of the net assets in equity, 47.21% in debt and 28.50% in cash & equivalent.

 
The scheme performance across all the time frames has been phenomenal. The scheme has outperformed its peers by a mile. The aggressive nature has helped the fund to be among the top 5 schemes in the ranking across all the time frame. The fund currently manages assets worth of Rs.1141.50 crore, which has increased over 44% over last one year period.

In the equity segment the fund has invested in 29 stocks. The top three stocks in the portfolio are Infosys Technologies Ltd 2.24%, Crompton Greaves Ltd 1.87% and Bank of Baroda 1.64%. The fund has higher weightage in Auto & Ancillaries with 3.31% followed by IT sector with 2.89%. The fund manager has added Elecon Engineering Company Ltd, Oil & Natural Gas Corpn Ltd, IPCA Laboratories Ltd, Wire and Wireless India Ltd and Zee News Limited in the current month's portfolio. Infosys Technologies Ltd has been the good pick by the fund manager as the stock price has gone up by 35% within the time frame of six months. Fund manager further sold Container Corporation Of India Ltd and KEC International Ltd.

In debt segment the fund has allocated 30.01% of the portfolio in commercial papers and 38.12% in corporate bond. The scheme has highest exposure in AAA/P+ instruments and remaining 34.62% in AA/Equ, 3.94% in Sovereign and 1.7% in call and cash. The average maturity of the scheme is 456 days, where as the category average is 646 days. . The scheme having low average maturity is less vulnerable to interest rate volatility. 

MIP schemes, having higher equity allocations, have been doing well in the recent past thanks to the booming equity markets. The investors looking at steady returns from a mix of equity and debt may do well to stay put in HDFC MIP Long Term Plan.

The minimum investment of the scheme is Rs.5000. Fund charges no entry load but an exit load of 1% if redeemed before 12 months and amount is less than 5 crore. The expense ratio of the fund is 1.83. The equity portion of the fund is managed by Mr. Prashant Jain and debt by Mr Shabbir Kapasi.

Scheme Name

1 Year

HDFC MIP - LTP - Growth

12.576

Reliance MIP - Growth

12.355

Birla SunLife MIP - Growth

11.9224

HSBC MIP - Savings Plan - Growth

11.5478

LIC MIP - Cumulative

11.0379

Prudential ICICI MIP - Cumulative

10.9521

FT India MIP - Plan A - Growth

9.9405

JM MIP - Growth

9.0988

UTI Monthly Income Scheme - Growth

8.6005

DWS MIP Fund - Plan A - Growth

6.5197

Indices

 

CRISIL MIP Blended Index

8.8944

 

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

 

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) Reliance Mutual Funds:

http://prajnacapital.blogspot.com/2011/07/buying-hdfc-mutual-funds-online.html

 

4) Sundaram Mutual Funds:

http://prajnacapital.blogspot.com/2011/07/buying-sundaram-mutual-funds-online.html

 

5) Birla Sunlife Mutual Funds:

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

 

6) UTI Mutual Funds:

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

  

7) SBI Mutual Funds:

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

 

8) Edelweiss Mutual Funds:

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

 

9) IDFC Mutual Funds:

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

 

Popular posts from this blog

Change in Fund Manager for some of HSBC Mutual Fund Schemes

Buy Gold Mutual Funds Invest Mutual Funds Online Download Mutual Fund Application Forms Call 0 94 8300 8300 (India) However, this facility is only available to Unit holders who have been assigned a folio number by the AMC.   HSBC Mutual Fund has announced that the below mentioned schemes shall be managed by the new fund managers as stated in the table. The effective date will be July 02, 2012.   Amaresh Mishra 's will be Vice President and Assistant Fund Manager. Having done a Post graduate diploma in Business Management and Bachelor of Chemical Engineering, he has over seven years of experience in Equities and Sales.   Mr. Piyush Harlalka's designation shall be Vice President- Fixed Income. Qualified as a C.A., C.S. and holding M.B.A.( Finance degree), he has over six years of experience in Fund management and ...
Read more

How EEE and EET Tax affect Retirement Investments

  An important factor while choosing a financial product is its taxation , and for retirement savings, this is even more important as the sums involved are usually life-long savings. Here's a look at the current tax treatment of three major long-term retirement planning products, which are - Employees' Provident Fund (EPF), Public Provident Fund (PPF) and National Pension System (NPS). EPF The tax treatment is EEE, which means your money is exempt from taxes at the time of investment, accumulation and withdrawal. At the time of investment, the tax deduction is under the limit of section 80C of the Income-tax Act , which is currently Rs 1.5 lakh. Partial withdrawals are also tax-free if made after 5 years of continuous service. If withdrawals are made before 5 years of service, 10% tax will be deducted at source. Exceptions have also been provided for transfer of amount and conditions wherein the subscriber is unemployed for more than 2 months or the loss of job was beyond th...
Read more

Rs 14,000 Crore worth of tax free bonds coming soon from NHAI , PFC

  NHAI, PFC file prospectuses, coupon rate not yet decided MORE debt investment options have opened up for investors with AAA rated tax-free bonds worth over Rs 14,000 crore lined up. The National Highway Authority of India ( NHAI ) and Power Finance Corporation ( PFC ) are offering Rs 10,000 crore and Rs 4,033.13 crore worth of tax-free bonds, respectively, as per prospectuses filed with the Securities and Exchange Board of India (Sebi). Of a Rs 5,000 crore issue by PFC, Rs 966.87 crore has already been raised through private placement on September 28 and November 1. Tax-free bonds give investors tax-free return on any amount invested. In another kind of bonds, the long-term infrastructure bonds, investments up to Rs 20,000 are tax exempt, that is this cap amount can be deducted from the taxable income. Accordingly, the NHAI prospectus has clarified that only the amount of interest from -and not the actual investment on -its new bonds will be tax-free. "NHAI's publ...
Read more

Personal Finance: You can insure your wedding

But luck may not always be on your side. With the frequency of such attacks, as also other risks and unforeseen accidents growing, a wedding insurance is something you may want to look at if a marriage is being planned in the family. Event insurance plans like this is still in its nascent stages due to low awareness. And given the sacred nature of the ritual, nobody wants to discuss or think negative. But as wedding spends and risks grow, it makes sense to cover the potential monetary loss. The policy in those countries even covers the loss of the wedding ring, the wedding gown not reaching on time and even the expenses/loss due to late or non-appearance of the photographer which may mean staging the event once again for the photograph. In India, most insurance companies — including ICICI Lombard General Insurance, Oriental Insurance, Bajaj Allianz and National Insurance — offer wedding insurance. The policy is tailor made to individual requirements and needs. The sum insur...
Read more

DSP BlackRock MidCap Fund

Best SIP Funds Online   HOW HAS DSP BlackRock Small & Mid Cap Fund PERFORMED? With a 10-year return of 14.61%, the fund has outperformed both the category average (12.34%) and the benchmark (10%) by a good margin. Should you invest in DSP BlackRock Small & Mid Cap Fund? This fund invests predominantly in mid-cap stocks but takes a sizeable exposure in small-caps as well. The focus is on nascent companies with high growth potential. The fund manager places emphasis on quality and avoids inferior businesses even if these look tempting from a valuation perspective. Over the past year, the fund portfolio has grown, having added to some of the underperforming sectors like chemicals and healthcare. Its portfolio churn has come down significantly. The heavily diversified portfolio is run completely agnostic of its benchmark index— most bets are from outside the index—which can at times lead to bouts of underperformance as seen in the recent years....
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