HDFC Mutual Fund will merge HDFC Prudence Fund and HDFC Growth Fund into a new scheme named HDFC Balanced Advantage Fund.
HDFC Prudence Fund and HDFC Growth Fund managed AUM of Rs.36,594 crore and Rs.1,129 crore respectively as on March 2018.
The merged scheme, open-ended balanced advantage fund, will now invest up to 100% in equity and debt securities, and up to 10% in REITs and InvITs.
While there is no change in the fundamental attributes of HDFC Prudence Fund, HDFC Growth Fund will undergo few changes in its fundamental attributes. HDFC Growth Fund currently invests at least 80% in equities and the rest in debt securities.
Prashant Jain will manage the scheme while Rakesh Vyas would manage the overseas assets.
The fund house has also proposed to merge HDFC Balanced Fund and HDFC Premier Multi-Cap Fund and rename the new merged scheme as HDFC Hybrid Equity Fund. This new scheme will be categorised as an aggressive hybrid scheme.
HDFC Balanced Fund had an AUM of Rs.20,401 crore while HDFC Premier Multi-Cap Fund managed an AUM of Rs.295 crore on March 2018.
HDFC Hybrid Equity Fund will invest 65% to 80% of its assets in equities, 20-35% in debt instruments and up to 10% in both REITs and InvITs. HDFC Premier Multi-Cap Fund used to invest at least 85% of its corpus in equities of which the fund manager invested 35-65% in large and mid cap stocks and a maximum of 15% in debt and money market securities.
Chirag Setalvad will manage HDFC Hybrid Equity Fund with Rakesh Vyas managing the overseas investments.
The addendum further stated that facilities such as SIP, Micro SIP, Group SIP, Fixed Systematic Transfer Plan, Systematic Withdrawal Advantage Plan and Dividend Transfer Plans in HDFC Premier Multi-Cap Fund would continue under the HDFC Hybrid Equity Fund.
However, investors using facilities like Flex SIP, capital appreciation systematic transfer plan (CASTP), flex systematic transfer plan (Flex STP), flex index plan, swing systematic transfer plan (Swing STP) and other systematic facilities shall have to register afresh under the new scheme.
The following changes has taken place to comply with SEBI’s scheme categorisation and rationalisation and the changes will come into effect on 1 June.
