HDFC Hybrid Equity- Open-Ended Aggressive Allocation Scheme, the investment goal of this scheme is mainly to produce capital appreciation/earnings from a portfolio of equity-related instruments. The HDFC Hybrid Equity Mutual Fund will also invest in debt and money market securities.

Minimum investment details of the fund: Rs 5,000 and later Load details Re 1 Multiplier of entry load: Not applicable.

Exit load: In respect of each purchase / switch-in of units, up to 15% of the units can be redeemed without any exit load—allocation Date.

If the units are redeemed / switched-out within one year from the date of allocation of units, any rebate beyond the above cap will be subject to a 1.00 percent exit load. No exit load will be chargeable if the units are redeemed/switched out after one year from the date of allotment.

HDFC Hybrid EquityFund manager:

Chirag Setalvad is a senior fund manager at HDFC Mutual Fund, primarily investing in Indian equities. On 19 March 2007, Setalvad re-joined HDFC Mutual Fund. Before this, he was working with New Vernon Advisory Services Private Limited from October 2004 to February 2007.

Suitable for investors:

Long Term Capital Appreciation / Income Generation to invest primarily in Equity and Asset related Instruments.

The scheme will also invest in debt and money market shares.

Risk level: Risk is moderately high

Top 3 Features of HDFC Hybrid Equity Fund

  • The long-term capital appreciation fund is intended initially to invest in sound assets that sell at a substantial discount to their intrinsic value. When the company goes through a full cycle, it is better to invest for the long term.
  • SIP investors can choose weekly, quarterly, monthly, and annual SIPs. The minimum amount for this limit is Rs. 300 – 5000 Rupees.
  • Returns For five years, the scheme achieved a steady return of over 21 percent and was, therefore, in popularity with both new and old investors.

The 2: 1 equity to debt ratio portfolio in HDFC Hybrid Equity Mutual Fund is a well-balanced one. The fund aims to remain fully invested at all times and to avoid cash calls, and no dramatic allocation changes with market swings.

The fund aims to invest in growth companies with growth potential and a strong return to equity, quality management, and market positioning at fair prices. Although the allocation of equity is strictly controlled, the bond market is conservatively controlled. The fund has given good returns beyond the benchmark and above multi-trailing periods.

Conclusion: According to mutual fund advisors, aggressive hybrid schemes are expected to deliver CAGR returns of around 12 percent, provided the investor remains invested for three to five years. Whoever invests in this group has to wait for 3 to 5 years to get decent returns. Don’t judge such schemes with one-year returns.

HDFC Hybrid Equity Fund is the third-largest fund in the category with assets of Rs 21,961 crore. Experts say that given the metrics of the HDFC Hybrid Equity Fund, existing investors will continue to invest in it.