An open-ended debt fund, the HDFC Money Market Fund invests in cash market securities together with business papers, certificates of deposits, business payments, Treasury payments, and authorities securities for a complete maturity of lower than one yr. The fund has been rated 4-star by Morningstar and 3-star by Value Research. The fund has now functioned for 23 years since being launched on November 18, 1999. The funding technique employs cash market merchandise with a most one-year maturity. Money market securities have durations of lower than a yr, due to this fact the scheme has a minimal rate of interest threat and, because the fund home recommends, is finest suited to an funding time period of three to 12 months. Let’s now study how the fund has carried out throughout the course of its existence primarily based on returns documented as of October 31, 2022, supplied that the fund has supplied a CAGR of seven.06% since inception.
Performance of HDFC Money Market Fund
Your complete funding of Rs. 1.20 lakh would have turn into Rs. 1.23 lakh if Rs. 10,000 had been invested by means of a SIP on this fund all through the earlier yr, because of the fund’s 4.41% return. A month-to-month SIP of ₹10,000 would have enhanced your complete funding of ₹3.60 lakh to ₹3.85 lakh in response to the fund’s three-year return of 4.36%. A month-to-month SIP of ₹10,000 would have grown your complete funding of ₹6.00 lakh to ₹6.86 lakh because of the fund’s 5-year return of 5.30%.
The fund has given a return of 6.36% within the final 10 years, therefore a month-to-month SIP of ₹10,000 would have turned your complete funding of ₹12 lakh into ₹16.63 lakh. A month-to-month SIP of ₹10,000 would have transformed your complete funding of ₹18 lakh into ₹31.20 lakh contemplating the fund’s 15-year return of 6.97%. Your complete funding of ₹27.60 lakh would have turn into ₹67.09 lakh with a month-to-month SIP of ₹10,000 primarily based on the fund’s return of seven.06% since inception.
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HDFC Money Market Fund (hdfcfund.com) Key particulars of HDFC Money Market Fund
As on October 31, 2022, the fund recorded a complete AUM of ₹13,947.34 Cr and a mean AUM for the month of October 2022 of ₹13,530.49 Cr. The fund is managed by Vikash Agarwal (since July 1, 2020) having a complete expertise of over 16 years. As on October 31, 2022, the common plan posted a NAV of ₹4704.03 and the direct plan recorded a NAV of ₹4775.32. The fund is benchmarked towards NIFTY Money Market Index B-I and the fund’s extra benchmarked index is CRISIL 1 yr T-Bill Index.
The fund’s high 5 holdings are Reserve Bank of India, Small Industries Development Bank of India Ltd., LIC Housing Finance Ltd., Axis Bank Ltd., and Canara Bank and the fund has an expense ratio of 0.21% for direct plan and 0.41% for normal plan. The fund’s portfolio classification by asset class is allotted 19.16% into G-Sec STRIPS, SDL, T-Bills, 45.60% into CP, 29.19% into CD and 6.05% into Cash, Cash Equivalents and Net Current Assets.
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