Skip to main content

HDFC Sensex Plus Index Fund

Invest In Tax Saving Mutual Funds Online

Call 0 94 8300 8300 (India)

HDFC Index Fund Sensex Plus

If you are looking to buy a fund that is close to mirroring the index, then HDFC Index Fund – Sensex Plus Plan (HDFC Sensex Plus) is a good option. The fund is also a good candidate to buy into market dips such as the present one. With a track record in excess of 10 years, this index fund delivered 20% annually since its launch in July 2002. That is a good 4 percentage points more than the Sensex.

The fund and suitability
HDFC Sensex Plus seeks to invest 80-90 per cent of its assets in the Sensex basket and reserves mandate to invest 10-20 per cent outside the basket. In other words, the risk that you will take on will be only as much as the index. However, you will have an opportunity to earn some extra returns through exposure outside the index.

This fund will suit the following investors: one, those wanting to limit their risk by taking exposure to bellwether index stocks. Such investors can do a regular SIP in this fund. With a very low expense ratio (1 per cent) and a limited exit load period (30 days), this fund is ideal if you wish to test waters in equities.

Two, the fund is a good candidate for those looking for a vehicle to capitalize on market falls. In significant market falls, instead of scouting for individual stock/fund opportunities, it is a good idea to buy in to the bellwether index if you do not have much time to track/choose funds. A market fall of 5 per cent or more often provides opportunities to buy small amounts and average costs.

For those wanting to use tools such as the 'trigger option', an index fund can be a good low cost option. HDFC Sensex Plus, although actively managed to the extent of stocks outside the index, charges only as much/lower than most other index funds, although it has delivered more, thanks to the active part of the portfolio.

The Sensex has currently fallen by about 6 per cent from January to date. Trailing price earnings ratios have fallen from over 18 times to 16.5 times. While forecasts are clearly not factoring much upside on earnings, falling commodities as well as less painful interest rates may mean that margins and eventually earnings could make a slow recovery.

While earning downgrades continue, the quantum is much lesser now, suggesting that it could be bottoming out. That means the next few months, at least until the December earnings, could provide opportunities for stock accumulation. Hence, investors could use dips of say 5 per cent or more in the index to buy into funds such as HDFC Sensex Plus, which are similarly positioned.

Performance and portfolio
HDFC Sensex Plus did not always hold a record of beating the index. In years such as 2005 and 2006, the fund managed only as much as the index. Only from 2008, did the fund begin to make a mark in terms of bettering the index. That year, the fund contained declines to 47 per cent as against the Sensex fall of 53 per cent.

While it just matched the index performance in 2009, it started consistently beating the index since. In fact, it has managed to keep pace with, or outperform the category average of active equity funds in some of those years.

HDFC Sensex Plus has all the 30 Sensex stocks, roughly in the same weights as the index. But the stocks outside the index are an interesting mix of mid- and large-sized companies. Some of them, such as the stock of Solar Industries, can be seen across many HDFC funds. Evidently, some of them are house calls.

India Glycols, Navneet Publications and SJVN are also some of the interesting picks.
The fund is managed by Vinay R. Kulkarni.

Happy Investing!!

We can help. Call 0 94 8300 8300 (India)

Leave your comment with mail ID and we will answer them

OR

You can write back to us at PrajnaCapital [at] Gmail [dot] Com

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

Invest in Tax Saving Mutual Funds ( ELSS Mutual Funds ) to upto Rs 1 lakh and Save tax under Section 80C.

Invest Tax Saving Mutual Funds Online

Tax Saving Mutual Funds Online

These links can be used to Purchase Mutual Funds Online that are regular also (Investment, non-tax saving)

Download Tax Saving Mutual Fund Application Forms from all AMCs

Download Tax Saving Mutual Fund Applications

These Application Forms can be used for buying regular mutual funds also

Some of the best Tax Saving Mutual Funds available ( ELSS Mutual Funds )

  1. ICICI Prudential Tax Plan Invest Online
  2. HDFC TaxSaver Invest Online
  3. DSP BlackRock Tax Saver Fund Invest Online
  4. Reliance Tax Saver (ELSS) Fund Invest Online
  5. Birla Sun Life Tax Relief '96 Invest Online
  6. IDFC Tax Advantage (ELSS) Fund Invest Online
  7. SBI Magnum Tax Gain Scheme 1993 Invest Online
  8. Sundaram Tax Saver Invest Online
  9. Edelweiss ELSS Invest Online

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

Best Performing Mutual Funds

    1. Largecap Funds Invest Online
      1. DSP BlackRock Top 100 Fund
      2. ICICI Prudential Focused Blue Chip Fund
      3. Birla Sun Life Front Line Equity Fund
    2. Large and Midcap Funds Invest Online
      1. ICICI Prudential Dynamic Plan
      2. HDFC Top 200 Fund
      3. UTI Dividend Yield Fund
    1. Mid and SmallCap Funds Invest Online
      1. Reliance Equity Opportunities Fund
      2. DSP BlackRock Small & Midcap Fund
      3. Sundaram Select Midcap
      4. IDFC Premier Equity Fund
    1. Small and MicroCap Funds Invest Online
      1. DSP BlackRock MicroCap Fund
    1. Sector Funds Invest Online
      1. Reliance Banking Fund
      2. Reliance Banking Fund
    1. Tax Saver MutualFunds Invest Online
      1. ICICI Prudential Tax Plan
      2. HDFC Taxsaver
      3. DSP BlackRock Tax Saver Fund
      4. Reliance Tax Saver (ELSS) Fund
    2. Gold Mutual Funds Invest Online
      1. Relaince Gold Savings Fund
      2. ICICI Prudential Regular Gold Savings Fund
      3. HDFC Gold Fund

Popular posts from this blog

All about "Derivatives"

What are derivatives? Derivatives are financial instruments, which as the name suggests, derive their value from another asset — called the underlying. What are the typical underlying assets? Any asset, whose price is dynamic, probably has a derivative contract today. The most popular ones being stocks, indices, precious metals, commodities, agro products, currencies, etc. Why were they invented? In an increasingly dynamic world, prices of virtually all assets keep changing, thereby exposing participants to price risks. Hence, derivatives were invented to negate these price fluctuations. For example, a wheat farmer expects to sell his crop at the current price of Rs 10/kg and make profits of Rs 2/kg. But, by the time his crop is ready, the price of wheat may have gone down to Rs 5/kg, making him sell his crop at a loss of Rs 3/kg. In order to avoid this, he may enter into a forward contract, agreeing to sell wheat at Rs 10/ kg, right at the outset. So, even if the price of wheat falls ...
Read more

ICICI Prudential Balanced Fund

 ICICI Prudential Balanced Fund scheme seeks to generate long-term capital appreciation and current income by investing in a portfolio that is investing in equities and related securities as well as fixed income and money market securities. The approximate allocation to equity would be in the range of 60-80 per cent with a minimum of 51 per cent, and the approximate debt allocation is 40-49 per cent, with a minimum of 20 per cent. An impressive show in the last couple of years has propelled this fund from a three-star to a four-star rating. The fund has traditionally featured a high equity allocation, hovering at well over 70 per cent, which is higher than the allocations of the peers. But in the last one year, the allocation has been moderated from 78-79 per cent levels to 66-67 per cent of the portfolio. ICICI Prudential Balanced Fund appears to practise some degree of tactical allocation based on market valuations. Within equities, well over two-thirds of the allocation is parked i...
Read more

Equity investors should track market developments

The stock markets have been volatile over the last few days. They are in a sideways movement and trying to find the bottom after a fall of 20 percent a week ago. The market sentiments are not very positive at the moment and the recent developments are expected to dampen them further. Globally, governments and central banks are trying to cut rates and announce packages to improve business sentiments. These are some of the major developments in the markets last few month: A) Global On the global front, another large US bank went into a financial crisis. The US government took quick measures to avoid the spread negative sentiments in the markets. The US government announced a bail-out package and agreed to shoulder the losses on the bank's risky assets. China announced a large cut in interest rates and reserve ratio to boost the investor sentiments in the markets. Recently, the World Bank announced China's growth rate next year will come down to 7.5 percent. The European ...
Read more

Fortis Mutual Fund

Fortis Mutual Fund, a relatively new player, it is still to prove its case and define its position in the industry. In September 2004, it came onto the scene with a bang - three debt schemes, one MIP and one diversified equity scheme. And investors flocked to it. Going by the standards at that time, it had a great start in terms of garnering money. Mopping up over Rs 2,000 crore in five schemes was not bad at all. The fund house has not been too successful in the equity arena, in terms of assets. Though it has seven equity schemes, it is debt and cash funds that corner the major portion of the assets. Most of the schemes are pretty new, and the two that have been around for a while have a 3-star rating each. The last two were Fortis Sustainable Development (April 2007), which received a rather poor response, and Fortis China India (October 2007). Fortis Flexi Debt has been one of the better performing funds, after a dismal performance in 2005. It currently has a 5-star rating. None ...
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