NFO: Here’s all you need to know about HDFC Fixed Maturity Plans – Series 38

By: |
April 12, 2017 5:41 PM

HDFC Fixed Maturity Plans - Series 38 is a close-ended scheme. The product is suitable for investors who are looking for regular income over 1165 days, which is the tenure of the plan. The risk associated with the fund is moderate in nature where investments will be mostly done in debt, money market and government securities.

The units can be purchased or sold during the trading hours like any other publicly traded stock, until the date of suspension of trading by stock exchanges where the scheme is listed.

HDFC Fixed Maturity Plans – Series 38 is a close-ended scheme. The product is suitable for investors who are looking for regular income over 1165 days, which is the tenure of the plan. The risk associated with the fund is moderate in nature where investments will be mostly done in debt, money market and government securities.

Here are a few things that one must know before investing one’s money in such kind of scheme.

New Fund Offer time period

The NFO is open from today, that is, from April 12, 2017, and closes on April 17, 2017.

Investment Objective

The investment objective of the Plan(s) under the Scheme is to generate income through investments in debt/money market instruments and government securities maturing on or before the maturity date of the respective Plan. There is no assurance that the investment objective of the Scheme will be realized.

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Asset Allocation
The broad asset allocation of the portfolio of respective plans is going to be followed in this manner, as stated below:


Liquidity of the Scheme

The units can be purchased or sold during the trading hours like any other publicly traded stock, until the date of suspension of trading by stock exchanges where the scheme is listed. The units of the scheme will be listed on the capital market segment of the National Stock Exchange of India Ltd. (NSE) and BSE Ltd. (BSE). The units of the scheme cannot be redeemed by investors directly with the fund until the maturity.

Load Structure

Entry load is not applicable and exit load is also not applicable in the following scheme. The units under the respective plans cannot be directly redeemed with the fund as the units are listed on the stock exchanges.

Minimum Application Charges

The Minimum amount for the application (Purchase or Switch) during NFO are as follows:

Rs 5000 and in multiple of Rs. 10 thereafter per application under each HDFC Fixed Maturity Plan during the NFO Period. If the amount of application is in odd multiples, the application will be processed for the eligible amount and the balance amount will be refunded. If the amount of switch- in is in odd multiples, the application will be processed for the eligible amount and the balance amount will be retained in the switch out scheme.

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Scheme’s Benchmark

For Plans having maturity up to 91 Days: Crisil Liquid Fund Index
For Plans having maturity more than 91 Days and up to 36 months: Crisil Short Term Bond Fund Index
For Plans having maturity more than 36 months: Crisil Composite Bond Fund Index

It is, however, to be noted that one should consult one’s financial adviser before investing in such a fund. Moreover, one must link one’s investments to one’s financial goals of life.

(Source: hdfcfund.com)

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