Introduction – HDFC Income Fund Growth
HDFC Income Fund Growth is a well-established debt mutual fund that aims to generate income and capital appreciation through investments in debt and money market instruments. Managed by HDFC Asset Management Co Ltd, the fund has been in operation since September 11, 2000.
Fund Details & Objective – HDFC Income Fund Growth
The primary objective of this fund is to provide steady returns by investing in high-quality bonds. With a focus on medium to long-duration debt instruments, the fund aligns with investors looking for stability in returns while maintaining moderate risk. For more detailed stock market analysis, visit our website: ProfitStocking.
Performance Overview – HDFC Income Fund Growth
The fund’s performance over the past few years has shown mixed results. Here’s a snapshot:
- 1-Year Return: 8.43%
- 3-Year Annualized Return: 6.05%
- 5-Year Annualized Return: 5.71%
- Category Average 3-Year Return: 6.35%
While the fund has delivered decent returns, its performance slightly lags behind the category average over longer timeframes.
Risk Measures – HDFC Income Fund Growth
- 3-Year Alpha: -0.73
- 3-Year Beta: 1.06
- 3-Year R-Squared: 92.33
- 3-Year Sharpe Ratio: -0.35
With a beta of 1.06, the fund has shown slightly higher volatility than the benchmark. However, the Sharpe ratio indicates that risk-adjusted returns have been below optimal levels.
Asset Allocation & Portfolio Composition – HDFC Income Fund Growth
- Bonds: 93.54%
- Cash: 6.19%
- Government Securities: 81.41%
- Corporate Bonds: 11.94%
The fund primarily invests in high-quality AAA-rated bonds, ensuring safety and minimal credit risk. The modified duration of 6.66 years indicates a moderately high sensitivity to interest rate changes.
Top Holdings – HDFC Income Fund Growth
- 7.18% Govt Stock 2037 – 19.96%
- 7.41% Govt Stock 2036 – 11.95%
- 7.54% Govt Stock 2036 – 11.44%
- 7.23% Govt Stock – 8.86%
- 6.79% Govt Stock – 4.60%
Government securities dominate the portfolio, providing stability and predictable returns.
Maturity & Yield Details – HDFC Income Fund Growth
- Yield to Maturity (YTM): 7.11%
- Average Credit Quality: AAA
- Majority Maturity Distribution: 10-15 years (62.30%)
With a YTM of 7.11%, the fund offers an attractive yield compared to fixed deposits and other traditional savings instruments.
Operational Details – HDFC Income Fund Growth
- NAV (as of March 25, 2025): INR 56.92
- Total Net Assets: INR 8,750.75 million
- Expense Ratio: 1.39%
- Minimum Investment: INR 100
- Exit Load: 0.00%
The low minimum investment requirement makes it accessible to retail investors, and the zero exit load allows for flexible withdrawals.
Future Predictions (2025-2030) – HDFC Income Fund Growth
Based on historical trends and market analysis, the expected yearly returns for the next five years are estimated as follows:
- 2025: 7.5%
- 2026: 7.8%
- 2027: 8.0%
- 2028: 8.2%
- 2029: 8.5%
These predictions are based on projected economic conditions, interest rate movements, and government bond yields.
Multiple Choice Questions (MCQs)
- What is the primary objective of HDFC Income Fund Growth?
a) Invest in equity stocks
b) Generate income through debt instruments
c) Focus on short-term market speculation
d) Invest only in corporate bonds
Answer: b) Generate income through debt instruments - What is the Yield to Maturity (YTM) of the fund?
a) 6.5%
b) 7.11%
c) 8.0%
d) 5.7%
Answer: b) 7.11% - Which sector dominates the fund’s portfolio?
a) Corporate Bonds
b) Government Securities
c) Municipal Bonds
d) Securitized Debt
Answer: b) Government Securities - What is the expense ratio of the fund?
a) 1.39%
b) 2.0%
c) 0.75%
d) 1.25%
Answer: a) 1.39% - What is the minimum investment required for the fund?
a) INR 500
b) INR 1000
c) INR 100
d) INR 10,000
Answer: c) INR 100 - What is the NAV of the fund as of March 25, 2025?
a) INR 50.25
b) INR 56.92
c) INR 60.10
d) INR 48.75
Answer: b) INR 56.92 - Which of the following is NOT included in the fund’s asset allocation?
a) Bonds
b) Equity Stocks
c) Cash
d) Government Securities
Answer: b) Equity Stocks - What is the total net asset value of the fund as of March 15, 2025?
a) INR 8,750.75 million
b) INR 10,500 million
c) INR 7,200 million
d) INR 9,000 million
Answer: a) INR 8,750.75 million - Who is the fund manager of HDFC Income Fund Growth?
a) Ramesh Iyer
b) Shobhit Mehrotra
c) Nitin Sharma
d) Ajay Singh
Answer: b) Shobhit Mehrotra - What is the exit load for this fund?
a) 0.50%
b) 1.00%
c) 0.00%
d) 2.00%
Answer: c) 0.00%
Conclusion
HDFC Income Fund Growth is a stable investment option for conservative investors seeking moderate returns with minimal credit risk. While its recent performance has slightly trailed category averages, its portfolio quality and government bond exposure make it a reliable choice for long-term debt investors.
For more investment insights, visit our website: ProfitStocking. For official fund details, check HDFC Mutual Fund.