HDFC Mutual Fund

About HDFC Mutual Funds

Mutual fund is a company that gathers money from several investors and breaks it into investments in stocks, bonds, government securities, and short-term debts. Mutual funds, in the past, were seen as a significant risk, but people now realise it is an investment that will expand their wallet’s capacity. The holding of mutual funds is known as a portfolio.

HDFC Asset Management Company Ltd., or HDFC Mutual Funds, started in 1999, is a joint venture between HDFC Ltd. (Housing Development Finance Corporation Limited) and ABRDN Investment Management Limited, holding 52.6% and 16.2% shares, respectively. It provides a full range of savings and investment products across asset classes, giving its broad base of retail and institutional customers – who currently have 9.9 million live accounts—opportunities to build income and wealth.

With one of the most significant market shares in actively managed equities-oriented funds, HDFC Bank mutual fund holds a monopolistic position in equity investments. With one of the biggest market shares in assets from individual investors, HDFC mutual funds are one of the most popular options for retail investors. With an impressive record of 27 years, HDFC AMC presently have approximately 75,000 empanelled distributors, including banks, national distributors, and distributors of mutual funds.

Type of HDFC Bank Mutual Funds

HDFC Mutual Funds offers 140 schemes across different categories including 26 equity, 48 debt, two liquid funds and nine hybrid mutual funds. The following are the HDFC mutual funds type:

Growth or Equity Programs

One of the most well-liked mutual fund strategies is Growth or Equity Programs. They make it possible for investors to trade in stocks. Three additional categories can be used to split an equity fund further:

• Sector-specific funds
• Index Funds
• Tax-saving funds

Money Market Funds Or Liquid Funds

These funds invest in short-term debt instruments, looking to give a reasonable return to investors over a short period of time. These funds are suitable for investors with a low-risk appetite who are looking at parking their surplus funds over the short term. These are an alternative to putting money in a savings bank account.

Fixed Income Or Debt Mutual Funds

These funds invest a majority of the money in debt – fixed income, i.e. fixed coupon-bearing instruments like government securities, bonds, debentures, etc. They have a low-risk-low-return outlook and are ideal for investors with a low-risk appetite looking at generating a steady income. However, they are subject to credit risk.

Monthly Income Plans (MIP) Or Hybrid Plans

These funds are comparable to balanced funds; however, they have a lower percentage of equity assets. They are sometimes known as marginal equity funds for this reason. They are particularly well suited to retiree investors who desire a consistent income with minimal risk.

How can you Invest in HDFC Bank Mutual Funds?

HDFC mutual funds eliminate risk by investing the money in a diverse portfolio. One can invest in HDFC Mutual Funds online and offline. They just have to follow these simple steps: 

HDFC MF Online

• Login to your account on the official website of HDFC Bank
• Go to Personal banking and opt for Invest
• Select ‘Mutual Funds’ in the drop-down menu
• The page will now feature HDFC mutual fund details
• If you have an ISA with HDFC, you will be able to find the invest now option (In case, you do not have an ISA account, you will have to do that first and then you will be eligible for HDFC mutual funds)
• Fill out the details inquired in the investment application form
• Choose your scheme
• Upload the scanned copies of documents for KYC verification
• Upon successful submission of the application form, your folio number will be generated.

HDFC MF Offline

• Visit the nearest HDFC Bank branch
• Fill out the investment application form
• Choose your scheme
• Attach the self-attested copies of the documents for KYC verification
• Submit the form to the bank

Documents Required to Invest in HDFC Mutual Fund

By contributing capital to the fund’s pool, mutual funds are a terrific method to broaden one’s financial horizons. Top-tier, qualified fund managers distribute these funds in order to provide investors with the highest returns. HDFC mutual fund is among the best investment options, and the procedure for investing in them is simple.

The following documents are required to invest in mutual funds with HDFC AMC:

Proof of Identity

Any one of the following documents may be submitted:

• Permanent Account Number (PAN)
• Passport
• Voter card
• Driving license
• Aadhaar card
• NREGA job card
• Any other document approved by the Central Government

Proof of Address

Any one of the following documents may be submitted:

• Passport
• Voter card
• Driving license
• Aadhaar card
• NREGA job card
• Any other document approved by the Central Government

Other documents required are Documents Attestation, PAN Exempt Investor Category and In-Person Verification (IPV).