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.
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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.
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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 |
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| CRISIL MIP Blended Index | 8.8944 |
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