The HDFC Regular Savings Fundis a credit opportunities fund from HDFC Asset Management Company and is a very popular mutual fund investment scheme. Launched on 28th February 2002, this mutual fund investment scheme seeks to generate regular income through investment in debt securities and money market instruments. The minimum investment amount for investing in this fund scheme for a first-time investor is Rs. 5,000.This scheme ranks amongst the top mutual funds in India and is currently ranked third in the ‘Credit Opportunities Funds’ category by CRISIL for the first quarter of 2017 ended in June which remains unchanged from the previous quarter. CRISIL has rated the fund’s performance as average in this particular category.It has also managed to retain its Morningstar Rating of Neutral.
HDFC Fund House is considered to be among the best fund houses in the country and has an excellent track record to boot. This mutual fund has been managed under the stewardship of Mr. Anil Bamboli since January 2004. Aided by a strong team, Mr. Bamboli and his team look to invest primarily in medium to low-quality commercial papers and debentures to generate an extra return. The fund has been consistently doing well in the last few years while managing to deliver impressive returns when compared to other peer funds in the same category. However, the expense ratio is slightly on the higher side at 1.87 per cent which has been increased from its earlier rate of 1 per cent.
Initially positioned as no-frills, standard high-credit-quality short-term product, the investment philosophy of this fund has gone through a drastic change. Currently allotted as a short-term credit fund, Mr. Bamboli, and his team makes use of fundamental research to determine healthy, strong and investment-worthy companies with a good track record. Mr. Bamboli focuses on diligent research while selecting the securities and zeroes in those securities which showcase attractive spreads.
Securities with a sub-AAA and sub-AA rating constitute most of the portfolio which is a marked change from its previous investment strategy which entailed roughly 70 per cent of its investment in high-quality AAA rated securities. Further, the team adopts a proprietary model while constructing the portfolio which allocates a credit score to each issuer. This helps in figuring out the required level of exposure needed to be assigned to each entity.
Further, Mr.Bamboli along with his investment team boasts an enviable and proven track record in running high-credit-quality strategies which has clearly rubbed off on the fund’s performance. Thus, Mr. Bamboli along with his fund management team has shown they are more than capable of efficiently managing and executing credit-based strategies. Taking these factors into consideration, we would like to whole heartedly recommend this fund to investors looking to diversify their portfolio and to investors who were seemingly on the fence whether to add this best performing mutual fund to their existing portfolio.
Every one of us wants to create wealth by investing in the top mutual funds. This fund is suitable for investors looking for an investment in debt and money market instruments with a short to medium term maturity along with a minimum time horizon of two years. If you can handle short term volatility in Debt Funds and are willing to accept moderate investment risk, you can approach our financial advisors for tailor made investment plans.