HDFC stands for Housing Development Finance Corporation Limited. It is one of India’s main financial conglomerates. The company was established in 1977 as a company for mortgage but it has grown since then into a financial giant which has many subsidiaries likes HDFC Bank, HDFC Standard Life Insurance Company Limited among many others. The services and products provided by the company vary from mortgages to mutual funds to life insurances along with others.

Mutual funds are offered by a subsidiary of HDFC, the asset management company HDFC Mutual Funds. The first product by the company was launched in 2000 and since then has grown considerablyand it now offers mutual funds varied in 11 different types of funds.

HDFC Mutual Funds offer many options to the investors which range from regular equity to funds of funds schemes, liquid funds and many others. These are as follows

• Equity / Growth Fund

HDFC growth funds usually invest heavily in the equity markets. The fund options that are offered in this scheme are targeted to meet the long or short term investment needs of the investors.

• Quarterly Interval Fund

In these mutual funds investments are made in both open-ended and close-ended schemes and they can be sold as well as redeemed at predefined intervals.

• Liquid Funds

These investments are made in securities and have maturity periods of 91 days which makes them a low risk investment option. They are considered to be better for liquidity do not have exit loads.

• Debt/ Income Fund

The debt funds, or income funds provided by the HDFC Mutual Funds invests in options like short / long term bonds, floating rate debts, etc.

• Children’s Gift Fund

The Children’s Gift Fund which is offered by HDFCMF has been designed to provide a chance for the investment to grow over a long term. This allows the funds to be used to prepare for the future of children.

• Annual Interval Fund – Series 1

These mutual funds by HDFCMF are quite similar to the Quarterly Interval Funds mentioned above and these invest in money markets, government securities etc.

• Exchange Traded Funds

HDFC Mutual Funds’ Exchange Traded Funds or ETFs are designed as such that are traded on the stock markets. Due to thisthey offer higher liquidity options and have lower investment than mutual funds. The money is usually invested in gold and this makes it a high risk investments.

• Rajiv Gandhi Equity Savings Scheme

The Rajiv Gandhi Equity Savings Scheme (RGESS) is an investment scheme that gives the investors tax benefits. It is to lure small investors into investing in the capital markets.

• HDFC Capital Protection Oriented Schemes

This scheme aims at producing an income by investment in the debt markets. These investments offer investors a low risk investment environment.

• Fixed Maturity Plan

The Fixed Maturity Plan which are offered by the company are mutual funds that are designed to invest in government securities and debt markets. These offer low risks to investors and  usuallycan be close-ended schemes.

• Fund of Fund Schemes

In this scheme mutual funds are used to invest in other mutual funds. These schemes have high risks and thus they can give high returns.

Reason to choose HDFC

HDFC Mutual Funds has very much to offer to potential investors. The company gives a promise to the investor to invest profitably which is made obvious by the following observations:

• Most of the products offered have CRISIL ratings of 3 or above.
• Investors can also get advantages in taxes when they investing with HDFCMF through their various schemes.
• The funds being offered very on a large scale from long term to short term funds and close and open-ended funds.
• The company offers the customers with many funds to choose from and invest in.
• The company has designed something to cater to portfolio requirement of every investor in terms of risk. Their products offer low, medium and high risk.