HDFC retirement saving mutual fund NFO Review – Should you invest?
The largest private sector bank HDFC has launched the brand new and much awaited retirement investment product called the HDFC Retirement Saving Mutual Fund New Fund Offer. This new scheme from the trusted house of HDFC is available for purchase, but for a limited period. Those who want their future to be secured and get high returns to their saving at the time they stop earning, they must buy these Mutual fund New Fund Offers from HDFC and have a tension free retired life ahead. As the mutual funds fall under moderate risk category of investing, thus one must be aware of the market risks involved with it.
Availability of the HDFC retirement saving mutual fund NFO
The HDFC has put this product on sell for a limited tenure of time. It will be open for buy from 2nd Feb, 2016. As the stocks are limited, it is advisable to buy these funds while being available. The registration in this retirement mutual fund scheme will be closed on 19th Feb, 2016. After that the company has decided to again reopen the sell after 5 days from which the sell has been halted i.e. 19th Feb. To view the recent
What one can expect from the HDFC retirement savings fund?
Those who want a good retirement pension scheme can invest in this retirement plan. There are three plans that are in offer under this scheme. They are equity type, hybrid equity type and hybrid debt type that are on offer. One can select any three of the plans according to their requirements. All three plans under the retirement savings NFO by HDFC are meant for withdrawing pension after attaining the age of 60 years.
|Attributes||Equity Plan||Hybrid Equity Plan||Hybrid Debt Plan|
|Area of investment||Here investment is made on equity and its related instruments. There is no further investment of the balance amount.||Here the investment is made not only in equity and its related instruments, but also the balance amount is invested in debt and in money market instruments.||Here the investment is done in debt and in money market instruments and the remaining balance is invested back to equity and its related instruments.|
|Lock in period||5 years||5 years||5 years|
Risk control of the HDFC retirement savings mutual funds
Mutual funds are not fixed interest rate investment plans. Sometimes they give fruitful returns, while sometimes they do not live up to the expectations and run into losses. So there is always a moderate level of risk factor involved in this type of investment. The nature of returns is directly proportional to the nature of market. The aim is to lower the risks and get steady returns for a long term. Thus the investor will get good run for his / her money. There are few areas of risks which are to be handled properly. They are risks on credit, risks on interest rates and risk on the liquidity of capital. Proper handling of risks involved will maximize the return benefits of the mutual funds.
of the HDFC retirement savings Mutual funds NFO
There are some assigned tax benefits under the HDFC retirement savings mutual funds NFO, under the Income Tax Act’s Section 80 C. Tax deductions of a maximum of Rs. 1.5 lakh is permissible. So one will not have to worry about the income tax applied on them if they fulfill the basic criteria. However, the interest earned under these mutual fund investments are taxable.
Minimum amount of investment
For each investment unit, while the funds are in NFO period i.e. new fund offer period, the minimum investment to be made is Rs. 5,000. There is no maximum limit of investment. After the NFO period gets over, one can purchase them for Rs. 5,000 or more and also buy added units for Rs. 1000 or more.
Lock in period and Entry, exit loads on these mutual funds
After the allotment of fund units, one cannot alter the plans or transfer them or cash in them or sell them for a period of 5 years. This is the lock in period of the investment scheme. After completion of 5 years, one can make alterations in the funds. According to sources of SEBI, there will be no such entry load applicable in these mutual fund NFOs. Even if the units are cashed in or transferred after the investor attains the age of 60 years, the exit load is null. However, if the investor wishes to exit the plan or redeem it or transfer it before he / she attains the age of 60 years, then 1 % of exit load will be applicable per unit.
How to get more information online?
To get more information about the HDFC retirement savings mutual funds NFO, one can log on to the webpage of the HDFC mutual funds or visit the link http://www.hdfcfund.com/scheme-details/7427209d-9f02-4c7c-b32d-397029b0f7ab to get direct access to these plans.