Top HDFC Mutual Funds to Invest in 2024
HDFC Mutual Fund is a prominent player in the Indian financial landscape. Established in 2000, it is a subsidiary of HDFC Ltd., one of India’s leading financial institutions. HDFC Mutual Fund has become a top choice for investors seeking various investment opportunities due to its commitment to excellence. Offering a comprehensive range of mutual fund schemes, the fund blends innovation, integrity, and a customer-focused approach to guide individuals on their financial path. Let’s explore this fund further.
What are HDFC Mutual Fund in India?
HDFC Asset Management Company Ltd., known as HDFC Mutual Fund, is India’s largest actively managed equity mutual fund. It ranks among the country’s most profitable Asset Management Companies (AMCs), overseeing assets totalling Rs. 4.8 trillion.
Some of the key performance metrics are:
- As of February 2023, the Assets Under Management (AUM) stood at ₹4,49,169 crore.
- In Q1 FY 2024, HDFC Asset Management Company (AMC) achieved an Average Assets Under Management (AAUM) of ₹4.86 lakh crore, securing an 11.3% market share.
- Q1 FY 2024 witnessed HDFC AMC reporting a 52% Year-over-Year (YoY) profit surge. Reaching ₹477.5 crore, coupled with a YoY revenue growth of 10.1%.
- As of June 30, 2023, HDFC Mutual Fund manages a diverse portfolio comprising 86 schemes across categories. This includes 31 equity, 26 debt, and 7 hybrid mutual funds, with a cumulative AUM of ₹5 lakh crore.
- Specifically, HDFC Equity Mutual Fund offers 31 distinct schemes in the equity category. Total AUM of ₹5,30,451 crores as of October 1, 2023.
- HDFC Mutual Fund boasts an extensive distribution network with 228 branches across 200 Indian cities.
List of HDFC Mutual Funds in India 2024
Here is a list of the 10 best HDFC mutual funds you might consider to invest in.
| HDFC Mutual Fund Name | Category | Fund Size (in Cr) | 3Y Returns |
|---|---|---|---|
| HDFC Infrastructure Fund | Equity | ₹1,663 | +40.86% |
| HDFC Small Cap Fund | Equity | ₹28,598 | +32.63% |
| HDFC Mid Cap Opportunities Fund | Equity | ₹60,417 | +30.47% |
| HDFC Focused 30 Fund | Equity | ₹10,432 | +30.47% |
| HDFC Dividend Yield Fund | Equity | ₹4,691 | +29.13% |
| HDFC Flexi Cap Fund | Equity | ₹49,656 | +27.73% |
| HDFC Housing Opportunities Fund | Equity | ₹1,355 | +27.61% |
| HDFC Large and Mid Cap Fund | Equity | ₹17,313 | +27.34% |
| HDFC ELSS Tax Saver | Equity | ₹13,990 | +26.99% |
| HDFC Retirement Savings Fund | Equity | ₹4,830 | +26.88% |
Disclaimer: Please note that the above list is for educational purposes only, and is not recommendatory. Please do your own research or consult your financial advisor before investing.
Note: The data on the top HDFC mutual funds in India in the list is from 16th April, 2024. However, for real-time updates on stock prices and market trends, visit the smallcase stocks collection today!
Key Information About HDFC Asset Management Company Ltd
| Key Information | Details |
|---|---|
| Mutual Fund Name | HDFC Mutual Fund |
| Company Name | HDFC Asset Management Company Ltd. |
| Founded | 1999 |
| Headquarters | Mumbai, India |
| Trustee Organization | HDFC Trustee Company Limited |
| Industry | Mutual Fund Management |
| Services | Mutual Funds, Portfolio Management Services, Alternative Investment Opportunities |
| Investor Service Centers (ISCs) | 228 across more than 200 cities |
| Total AUM (as of end of last quarter) | Rs. 41,55,661 |
| Customer Service Number | 1800 3010 6767 |
Top HDFC Fund Managers in India
- Chirag Setalvad: Chirag Setalvad, who has a B.Sc in Business Administration from the University of North Carolina, has diverse investment banking and equity research expertise. He joined HDFC Asset Management Company Ltd. in 2000 and returned in 2007 as the Senior Fund Manager of Equities, managing Rs. 57,928 Crore across 15 schemes.
- Prashant Jain: Prashant Jain, a Chartered Financial Analyst (CFA) holder of B.Tech and PGDM degrees, has managed funds since 1991. He joined HDFC Asset Management Company Ltd. in 2003 as the Chief Investment Officer, Executive Director, and Fund Manager. As of 2019, he has managed the HDFC Balanced Advantage Fund for 25 years, with an AuM of Rs. 90,640 Crore.
- Vinay R. Kulkarni: Vinay R. Kulkarni, B.Tech from IIT Bombay and PGDM from IIM Bangalore, started as a Software Engineer in 1988. He joined HDFC in 2006 as the Senior Fund Manager of Equity. He manages an AuM of Rs. 14,950 Crore across 10 HDFC Mutual Funds, including Equity Savings Direct Plan, Axsaver Direct Plan, Focused 30 Fund, Growth Opportunities Fund, etc.
- Shobhit Mehrotra: Shobhit Mehrotra holds degrees in B.Tech, MS, and MBA and specializes in credit ratings and fixed-income markets. He joined HDFC Asset Management Company Ltd. in 2004 and is currently the Head of Credit and Senior Fund Manager of Fixed Income. Manages an AuM of Rs. 36,709 Crore.
- Anupam Joshi: Anupam Joshi, with a PGDBM degree, has diverse experience, joining HDFC Mutual Fund as Portfolio Manager and Fund Manager of Fixed Income in 2015 and managing an AuM of Rs. 1.23 Lakh Crore across 11 schemes, including Corporate Bond and Liquid Direct Plan.
- Anil Bamboli: Anil Bamboli, a Chartered Financial Analyst (CFA) with a B.Com and MMS in Finance, has been in the industry since 1994. He joined HDFC Asset Management Company Ltd. in 2003 as a Senior Fund Manager and managed an AuM of Rs. 44,541 Crore across 22 schemes.
Brief Overview of the Best Mutual Funds
Let’s delve deeper into the details of these top 10 mutual fund schemes:
HDFC Infrastructure Direct Plan Growth
HDFC Infrastructure Direct Plan-Growth is an Equity mutual fund scheme. This scheme was offered by HDFC Mutual Fund in January 2013. The fund has an expense ratio of 1.27%, which is higher than the expense ratios of most other Sectoral-infrastructure funds.
HDFC Small Cap Fund Direct Plan Growth
HDFC Small Cap Fund is an Equity mutual fund scheme launched by HDFC Mutual Fund in January 2013. It is a medium-sized fund with an expense ratio of 0.61%.
HDFC Mid Cap Opportunities Direct Plan Growth
HDFC Mid Cap Opportunities Fund is an Equity mutual fund scheme launched by HDFC Mutual Funds in December 1999. Currently, Chirag Setalvad is the fund manager of HDFC Mid Cap Opportunities Direct Plan Growth.
HDFC Focused 30 Fund Direct Plan Growth
HDFC Focused 30 Fund Direct Plan-Growth is a Focused mutual fund scheme launched by HDFC Mutual Fund in January 2013. It is a medium-sized fund with an expense ratio of 0.51%.
HDFC Dividend Yield Fund Direct Growth
HDFC Dividend Yield Fund Direct-Growth is a Dividend Yield mutual fund scheme. The fund was launched by HDFC Mutual Fund in November 2020. It is a medium-sized fund with an expense ratio of 0.51%.
HDFC Flexi Cap Direct Plan Growth
HDFC Flexi Cap Direct Plan-Growth is a Flexi Cap mutual fund scheme launched by HDFC Mutual Fund in January 2013. It is a medium-sized fund with an expense ratio of 0.81%.
HDFC Housing Opportunities Fund Direct Growth
HDFC Housing Opportunities Fund Direct-Growth is a Thematic mutual fund scheme launched by HDFC Mutual Fund in November 2017. It is a medium-sized fund with an expense ratio of 1.22%.
HDFC Large and Mid Cap Fund Direct Growth
HDFC Large and Mid Cap Fund Direct-Growth is a Large & MidCap mutual fund scheme launched by HDFC Mutual Fund. It is a medium-sized fund with an expense ratio of 0.82%.
HDFC ELSS Tax Saver Direct Plan Growth
HDFC ELSS Tax Saver Direct Plan-Growth is a ELSS mutual fund scheme launched by HDFC Mutual Fund. It is a medium-sized fund with an expense ratio of 1.14%.
HDFC Retirement Savings Fund Equity Plan Direct Growth
HDFC Retirement Savings Fund Equity Plan Direct-Growth is a Retirement Solutions mutual fund scheme launched by HDFC Mutual Fund in February 2016. It is a medium-sized fund with an expense ratio of 0.68%.
Features of the HDFC Fund
Let’s have a look at the HDFC MF scheme.
- Diverse Fund Options: HDFC Mutual Fund performance provides various fund options across multiple categories, including equity, debt, hybrid, and more, catering to different risk appetites and investment objectives.
- Experienced Fund Managers: The HDFC MF performance boasts a team of professional and skilled fund managers, who play pivotal roles in managing and steering the funds.
- Robust Performance Metrics: HDFC Mutual Fund has demonstrated strong performance metrics, including consistent returns, prudent risk management, and adherence to investment strategies. These metrics contribute to the overall trust and reliability associated with HDFC Mutual Fund schemes.
- Wide Distribution Network: HDFC Mutual Fund has an extensive network of 228 branches spanning 200 cities in India. This ensures broad accessibility, making it convenient for investors to engage with its services.
- Focus on Investor Education: The HDFC top mutual funds emphasize investor education and awareness, providing resources and information to help investors make informed decisions. This commitment aligns with fostering a transparent and knowledgeable investor community.
- Innovative Investment Solutions: The best HDFC mutual fund for SIP in the long term continuously introduces innovative investment solutions, adapting to evolving market dynamics and investor needs. This approach allows investors to access contemporary and relevant investment opportunities.
- Adherence to Regulatory Standards: As a regulated entity, HDFC Mutual Fund adheres to regulatory bodies’ guidelines and standards, such as the Securities and Exchange Board of India (SEBI), ensuring compliance and transparency in its operations.
Who Can Invest in HDFC Funds?
HDFC Mutual Funds offers a range of options for investors in India.
To invest in the HDFC Mutual Fund list, you must be an Indian citizen or a Non-Resident Indian (NRI) with a valid permanent account number (PAN). You must also be at least 18 and have a bank account linked to your PAN.
You can invest in the HDFC Mutual Funds list through a variety of channels, including:
- Online: You can invest in HDFC Mutual Funds online through the HDFC Mutual Fund website or mobile app.
- Directly: You can invest directly in HDFC Mutual Funds directly through the fund house.
- Through a mutual fund distributor: You can invest in HDFC Mutual Funds through a mutual fund distributor, such as a bank, financial advisor, or broker.
The minimum investment amount for HDFC Mutual Funds varies depending on the fund scheme. Some schemes have a minimum investment amount of as low as Rs. 500, while others have a minimum investment amount of Rs. 10,000 or more.
When investing in HDFC Mutual Funds, it is important to consider your investment goals, risk appetite, and time horizon. You should also read the fund’s offer document carefully before investing.
How to Choose the Best HDFC MF Schemes?
Choosing the best HDFC MF schemes can be complex, with many factors to consider. However, by following these steps, you can narrow down your options and select the schemes that are most likely to meet your investment goals.
- Understand Your Investment Goals: Before you start investing, it is important to understand your investment goals and risk appetite. What are you hoping to achieve? What is your time horizon? Are you comfortable with taking risks?
- Consider Your Investment Horizon: Your investment horizon is the length of time you plan to invest your money. You can afford to take on more risk if you have the best HDFC mutual fund for a SIP long-term investment horizon. However, you might need to be more conservative if you have a short-term investment horizon.
- Do Your Research: Once you understand your investment goals and risk appetite, you can start to research HDFC MF schemes. Many resources are available to help you with your research, including the HDFC Funds website, online comparison platforms, and financial advisors.
- Consider the Fund’s Investment Objective: The fund’s investment objective depends on the type of assets it invests in. The HDFC mutual fund portfolio may offer a wide range of schemes, including HDFC equity funds, debt funds, hybrid funds, and solution-oriented funds. Thus, equity funds allocate their investments in stocks, while debt funds focus on bonds. Hybrid funds combine investments in both stocks and bonds. Thus, solution-oriented funds are structured to achieve particular investment objectives.
- Consider the Fund’s Track Record: The HDFC mutual fund’s strongest aspect is its historical performance. However, it’s essential to keep in mind that past success does not necessarily predict future outcomes.
- Consider the Fund’s Expense Ratio: The HDFC scheme’s expense ratio is the annual fee that is charged to manage the fund. A lower expense ratio allows a larger portion of your investment to contribute to potential returns.
Documents Required to Invest in HDFC Mutual Funds
PROOF OF IDENTITY
- PAN Card (Mandatory)
- Voter ID Card
- Driving License
- Passport
- Aadhaar Card
- Any other valid identity card issued by Central or State Government
PROOF OF ADDRESS
- Voter ID Card
- Driving License
- Passport
- Ration Card
- Aadhaar Card
- Bank account statement or bank passbook
- Utility Bill (not more than 3 months old)
If you are investing in a tax-saving mutual fund, you might also need to provide the following documents:
- Form 16 (for salaried individuals)
- Form 16A (for non-salaried individuals)
You can submit these documents online, by post, or in person at an HDFC Mutual Fund branch.
Please note that the required documents may vary depending on your circumstances. Therefore, check with HDFC Mutual Fund to confirm the documents you need.
How to Start HDFC Mutual Fund SIP Online?
To start an HDFC Mutual Fund SIP online, you will need to follow these steps:
- Create an account on the HDFC Mutual Fund website or mobile app.
- HDFC Mutual Fund mobile app
- Provide your personal details, such as your name, address, and PAN number.
- Link your bank account to your HDFC Mutual Fund account.
- Choose the HDFC Mutual Fund scheme you want to invest in.
- Enter the SIP amount you want to invest.
- Choose the frequency of the SIP, such as monthly, quarterly, or semi-annually.
- Review your details and submit the SIP registration form.
Once you complete these steps, your long-term SIP in the selected HDFC Mutual Fund scheme will become active. You will then begin investing in your chosen HDFC mutual fund. The SIP amount will be automatically debited from your bank account on your chosen date.
Taxation on HDFC Mutual Funds as per the Union Budget 2024-25
The taxation on capital gains from your mutual fund investments is based on their holding periods and asset allocation. A few revisions were made to the tax rates, depending on their types, in the Union Budget 2024-25. It may be important to learn about these revisions when considering HDFC mutual funds. These changes include:
Equity Mutual Funds
- Short-Term Capital Gains (STCG): The gains from equity mutual funds held for less than 12 months are now taxed at 20%. This is an increase from the previous tax rate of 15%.
- Long-Term Capital Gains (LTCG): For equity mutual funds held for over a period of over 12 months, gains are classified as long-term capital gains. The new budget introduces these key changes to the LTCG:
- Tax-Free Limit: The capital gains up to Rs. 1.25 lakh per year are tax-free. This is an increase from the previous limit of Rs. 1 lakh.
- Tax Rate: The gains exceeding Rs. 1.25 lakh are now taxed at a flat rate of 12.5%. This is an increase from the previous rate of 10%.
- Indexation: The benefit of indexation, which allowed investors to adjust the purchase price for inflation, has been removed for all asset classes, including equity mutual funds.
Indexation was a method that allowed investors to adjust the purchase price of assets for inflation. This adjustment reduced taxable profits when selling assets like property or gold. Previously, these long-term capital gains were taxed at 20%. The new rule imposes a flat 12.5% tax on all long-term capital gains but eliminates any indexation benefits.
| Capital Gains Tax | Holding Period | Old Rate | New Rate |
| Short-Term Capital Gains (STCG) | Less than 12 months | 15% | 20% |
| Long-Term Capital Gains (LTCG) | More than 12 months | 10% | 12.50% |
Debt Mutual Funds
- Short-Term Capital Gains (STCG): If you sell your debt fund units within a period of 36 months, the gains are classified as short-term capital gains. The STCG will be taxed according to your income tax slab rate.
- Long-Term Capital Gains (LTCG): For debt funds held for a period over 36 months, the gains are classified as long-term capital gains. The new budget outlines a few changes on the LTCG for debt funds, including:
- Tax Rate: A flat 12.5% tax rate applies to these gains.
- No Indexation Benefit: The previous benefit of adjusting the purchase price for inflation is removed. Now, the entire gain after three years is taxable at 12.5%.
- Change in Holding Period for Specified Mutual Funds: Previously, debt mutual funds with a holding period of over 36 months were taxed based on the investor’s tax slab, classified as Long-Term Capital Gains (LTCG). Now, for specified mutual funds where over 65% of the investment is in debt, the holding period for taxation has been reduced to over 24 months. These funds will still be taxed according to the investor’s tax slab as either LTCG or STCG.
| Capital Gains Tax | Holding Period | Old Rate | New Rate |
| Short-Term Capital Gains (STCG) | Less than 36 months | Taxed according to your income tax slab | Taxed according to your income tax slab |
| Long-Term Capital Gains (LTCG) | More than 36 months | 10% | 12.50% |
Hybrid Mutual Funds
Short-Term Capital Gains (STCG)
The tax on short-term capital gains depends on the fund’s asset allocation when it comes to hybrid mutual funds. Here is a breakdown of STCG tax rates according to their asset allocation in hybrid funds:
- Equity-Oriented Hybrid Funds (more than 65% in equity): The gains from units sold within 12 months are taxed at 20%.
- Debt-Oriented Hybrid Funds (less than 65% in equity): The gains from units sold within three years are taxed according to your income tax slab.
Long-Term Capital Gains (LTCG)
The capital gains tax on hybrid mutual funds that extend the specified period (12 or 36 months) is known as the long-term capital gain tax. The tax treatment under this condition is as follows:
- Equity-Oriented Hybrid Funds: The gains from units held for over a period of 12 months are taxed at 12.5%. The gains up to Rs. 1.25 lakh are tax-free.
- Debt-Oriented Hybrid Funds: The gains from units held for over a period of 36 months are taxed at 12.5% without indexation benefits. This means the entire gain is taxed at this rate, without adjustment for inflation.
| Type of Hybrid Fund | Short-Term Capital Gains (STCG) | Long-Term Capital Gains (LTCG) | Indexation Benefit |
| Equity-Oriented Hybrid Funds | 20% for holdings less than 1 year | 12.5% for holdings over 1 year, with gains up to Rs. 1.25 lakh tax-free | Not available |
| Debt-Oriented Hybrid Funds | Taxed as per income tax slab for holdings less than 3 years | 12.5% for holdings over 3 years | Not available |
Note: Mutual fund schemes where neither the equity nor debt orientation exceeds 65% will now be classified as long-term investments after 24 months. The previous holding period for these funds was 36 months. These will be taxed at the revised LTCG tax rate of 12.5%.
How are Returns Calculated on HDFC Mutual Funds?
Returns on HDFC Index Funds are calculated based on the change in the fund’s net asset value (NAV). The NAV is the market value of the fund’s assets divided by the number of units outstanding.
Thus, let’s discuss the types of returns:
- Income Returns: The fund’s investments generate income returns through interest or dividends. These income returns are usually paid out to investors regularly, either monthly or quarterly.
- Capital Gains: The fund generates capital gains when it sells its investments for a profit. It typically realizes capital gains when it redeems units from investors.
- Total Returns: Total returns are the combination of income returns and capital gains.
Additional Benefits of Investing in HDFC MF
Investing in HDFC Mutual Funds (MFs) can offer several additional benefits beyond the potential for financial growth and tax advantages. Here are some of the benefits of investing in HDFC MFs:
- Professional Management: HDFC MFs are managed by experienced and skilled fund managers with a proven track record of making informed investment decisions. These experts meticulously research and analyze market trends, company performance, and economic factors to select and manage the funds’ underlying assets effectively.
- Diversification: HDFC MFs offer various investment options across various asset classes, including equity funds, debt funds, hybrid funds, and solution-oriented funds. This portfolio diversification allows investors to spread their investments across different asset classes, reducing overall risk and enhancing the potential for consistent returns.
- Systematic Investment Plans (SIPs): HDFC MFs facilitate flexible investment strategies through Systematic Investment Plans (SIPs). SIPs enable investors to make regular, even small contributions to their chosen funds, inculcating financial discipline.
- Transparency and Accessibility: HDFC Mutual Funds are committed to transparency and provide investors with regular updates. These updates are about fund performance, portfolio holdings, and investment strategies.
- Extensive Distribution Network: HDFC MFs have a vast distribution network with over 228 investor service centres (ISCs) across more than 200 cities in India. This extensive network makes it easy for investors to access HDFC MF schemes through various channels, including banks, brokers, and financial advisors.
To Wrap It Up…
To conclude, HDFC Mutual Fund, managed by HDFC Asset Management Company, offers a wide range of investment options. With a solid history of performance, diverse fund choices, and a focus on client satisfaction, it provides investors with a reliable path toward achieving financial goals and optimizing returns.
As always, please do your own research and/or consult a financial advisor before investing.
Most Popular Mutual Funds:
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Frequently Asked Questions(FAQs) on HDFC Mutual Funds
Mutual funds are subject to market risks and there is no guarantee of returns. However, HDFC Mutual Fund is a well-established and reputable fund house with a proven track record of delivering good returns to investors.
The minimum amount to start an HDFC mutual fund SIP online varies depending on the fund scheme, but it is typically around Rs. 500.
To calculate your HDFC Mutual Fund SIP, you can use the following formula:
SIP amount = (Goal amount) / (Investment horizon in years) * (1 + Expected return rate)
Short-term investing goals are typically best suited for debt funds, which are less volatile than equity funds. Some good options for short-term investments include HDFC Liquid Fund and HDFC Ultra Short Term Fund.
You can increase the SIP amount of your HDFC mutual fund scheme online, via your bank, or at an investor service centre.
For fund-related queries, you can call their toll-free number: 1800 3010 6767 or 1800 419 7676. Additionally, you can also send your complaint to hello@hdfcfund.com.
