HDFC DEBT FUND FOR CANCER CURE 2014 NFO – 25 FEB 14 TO 11 MAR 14
HDFC DEBT FUND FOR CANCER CURE 2014 is not a regular mutual fund for investment for investors. It is meant for helping Cancer Patients in India by donating either 50% or 100% of dividends received from the fund. HDFC Mutual fund has tied up with Indian Cancer Society to help people suffering from Cancer and could not afford treatment.
A similar debt fund was launched by HDFC in 2011 and contributed a total of 10.87 crores as a donation to Indian Cancer Society. This helped to save a total of 517 patients from across 20 States who could otherwise not able to afford the treatment. The Cancer Cure Fund Newsletter has detailed list of this noble deed.
HDFC DEBT FUND FOR CANCER CURE 2014 NFO Starts on 25 Feb 2014 and closes on 11 Mar 2014. The unit value of HDFC DEBT FUND FOR CANCER CURE 2014 during NFO will be 10 rupees. Minimum investment amount to subscribe to buy or switch during this NFO will be Rupees 50,000/- and in multiples of Rs 1000/- thereafter. This is a 3 year Close-ended Capital Protection Oriented Income Scheme.
HDFC DEBT FUND FOR CANCER CURE 2014 is “oriented towards protection of capital” and “not with guaranteed returns”. The Scheme does not guarantee any returns.The orientation towards protection of capital originates from the structure of the Portfolio of the Scheme and not from any Bank guarantee, Insurance Cover etc. There is no assurance that the structure would provide the necessary protection of capital.
Risk Nature of HDFC DEBT FUND FOR CANCER CURE 2014
The scheme will be listed on both NSE and BSE. As it is a close ended fund, redemptions will be through the sale of units on the stock exchanges or after completion of 3 years (Maturity period of the scheme) from the date of allotment. Performance of the scheme is benchmarked against Crisil Short Term Bond Fund Index. There will not be any Entry load as per SEBI directive and Exit load is not applicable on this scheme. Further HDFC AMC will not charge any Investment or Advisory fees to further help the cause of helping Cancer Patients in India.
The fund has assigned “[ICRA]AAAmfs(SO)” by ICRA for credit rating.
Investors has option to invest in HDFC DEBT FUND FOR CANCER CURE 2014 NFO either through Regular Plan (Through any distributor) or Direct plan (Invest directly without any distributor). Both plans will be managed under single portfolio. Both Plan(s) offer only Dividend Option with Payout facility with the following sub – options:
1) 50% Dividend Donation Option 2) 100% Dividend Donation option. Option once selected can not be changed later during the scheme period.
The fund will primarily invest 60%-100% of funds in Debt and Money Market instruments with a Low to Medium Risk Profile. 0-40% will be in Government Securities which have a low risk profile.
As the scheme is focussed on capital protection, there may not be capital risk. Dividends are distributed subject to availability of surplus funds available for this purpose. Although AMC does not guarantee any returns past performance indicates positive returns. If you are looking for a way to invest your funds with capital protection and contribute for a noble cause, HDFC DEBT FUND FOR CANCER CURE 2014 from HDFC AMC may be an option. Donations of 50% and 100% of dividends are eligible for tax exemption under section 80 G.
Indicative Yields of Debt Instruments in Dec 2013
It is advised to always read Scheme Information Document (SID) before taking investment decision. If unable to understand or have doubts, please contact your financial advisor before investing in mutual funds.