HDFC Medium Term Opportunities Funds is currently known as HDFC Corporate Bond Fund and is an income generation scheme with a suggested investment period of 6-12 months.
The fund falls under moderately low-risk type that aims at income generation through investment in debt (including govt. securities) and money market securities with maturities not exceeding 60 months.
The fund's portfolio has a modified duration of 2.99 years and average maturity of 4.08 years.
The return since inception of the fund is 8.84%, making it one of the top-performing funds in the category.
The scheme HDFC Medium Term Opportunities Fund was launched on June 29th, 2010. However, on May 2018, the scheme got merged with two other funds namely the HDFC Floating Rate Income Fund–Long Term Plan and the HDFC Gilt Fund–Short Term Plan, to become HDFC Corporate Bond Fund.
It is an open-ended debt scheme that primarily invests debt securities of corporates and governments with ratings AA+ and above. The investment objective of the fund is:
To generate income/capital appreciation through investments predominantly in AA+ and above rated corporate bonds.
The fund is suitable for those who are looking for:
Following are key ratios and metrics of HDFC Corporate Bond Fund:
| Asset Under Management | Rs. 12,910 (As on Aug 31, 2019) |
|---|---|
| Expense Ratio (Regular Option) | 0.45 |
| Expense Ratio (Direct Option | 0.30 |
| Alpha | 1.43 |
| Beta | 0.71 |
| Sortino | 1.41 |
| Parametres | Fund | 52w High | 52w Low | Category |
|---|---|---|---|---|
| Modified Duration | 2.99 years | 3.04 years | 1.46 years | 2.45 years |
| Average Maturity | 4.08 years | 4.21 years | 1.73 years | 3.19 years |
| Yield to Maturity | 7.26 | 8.87 | 7.26 | 7.37 |
| No. of Securities | 119 | 146 | 117 | 56 |
This fund is one of the top-ranked funds in the category and has consistently outperformed its benchmark and the category since inception.
Click here to know more about the Returns in Both Regular and Direct Option
Click here to know about Asset Allocation Breakup HDFC Corporate Bond Fund
HDFC Corporate Bond Fund belongs to a leading asset management company of India, which is known for its disciplined style of investing and generating above-average returns in both equity and debt category of mutual funds.
HDFC Corporate Bond Fund is no different and is constantly ranked top 5 in the fixed income group of mutual funds. Since its launch in June 2010, the fund has continuously outperformed its category and benchmark by healthy margins, even beating returns of some good equity mutual funds in the short term.
The fund has a moderate risk profile which offers a safer bet for investors with short to medium-term outlook. The fund is the second-largest mutual fund in the corporate bond fund category.
With the falling interest rate scenario currently prevailing in the economy, the HDFC Corporate Bond Fund provides a good opportunity to earn higher returns while investing in a moderately risked debt fund.
The fund's low-risk ratios combined with a low operating cost makes it an ideal option for short to medium-term investment.
You can apply to invest in HDFC Corporate Bond Fund either through online or offline modes.
The online process is very easy and quick and an investor can generate higher returns by investing in the Direct Option of mutual funds. Following are the steps involved to invest online:
Under this mode, an investor needs to approach the investor services centre of HDFC mutual fund or any registered financial advisor. You need to submit the following documents to start with your investments:
Cash investment in the mutual fund is allowed up to Rs. 50,000 per investor per financial year as per SEBI guidelines.
