An open-ended debt fund, HDFC Money Market Fund invests in money market securities including commercial papers, certificates of deposit, commercial bills, treasury bills and government securities for total maturity of less than one year. The fund is rated 4-Star by Morningstar and 3-Star by Value Research. The fund is now in operation for 23 years since it was introduced on November 18, 1999. The investment strategy employs money market products with a maximum maturity of one year. Money market securities have a tenure of less than one year, so this scheme has minimal interest rate risk and, as recommended by the fund house, is best suited for an investment period of three to twelve months. Let us now examine how the fund has performed during its existence based on documented returns till October 31, 2022, given that the fund has delivered a CAGR of 7.06% since inception.
Performance of HDFC Money Market Fund
Your total investment is Rs. 1.20 lakh would have been Rs. 1.23 lakh if Rs. Rs 10,000 was invested in this fund through SIP over the last year because of the 4.41% return the fund has given. Monthly SIP of 10,000 will increase your total investment by 3.60 Lakh onwards 3.85 lakh assuming the fund’s three year returns of 4.36%. Monthly SIP of 10,000 your total investment would have gone up 6.00 Lakh onwards 6.86 lakhs owing to the 5 year return of the fund of 5.30%.
The fund has given a return of 6.36% in last 10 years, hence monthly SIP 10,000 your total investment would have been in 12 lakhs 16.63 lakhs. Monthly SIP of 10,000 would have converted your total investment in 18 lakhs 31.20 lakh considering the fund’s 15 year returns of 6.97%. your total investment 27.60 lakh would have been With monthly SIP of 67.09 Lakh 10,000 based on the fund’s 7.06% returns since inception.
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Key Highlights of HDFC Money Market Fund
As on October 31, 2022, the fund registered total AUM of 13,947.34 Crore and the average AUM for the month of October 2022 13,530.49 crores. The fund is managed by Vikash Agarwal (since July 1, 2020) who has a total experience of more than 16 years. As on October 31, 2022, the Regular Plan posted a NAV of Rs. 4704.03 and NAV of Direct Plan is entered 4775.32. The Fund is benchmarked against Nifty Money Market Index BI and the Fund’s additional benchmark index is CRISIL 1 Year T-Bill Index.
The fund’s top 5 holdings are Reserve Bank of India, Small Industries Development Bank of India Limited, LIC Housing Finance Limited, Axis Bank Limited and Canara Bank and the fund’s Expense ratio is 0.21% and 0.41% for Direct Plan. For regular plan. The fund’s portfolio classification by asset class has allocated 19.16% in G-Sec strips, SDLs, T-Bills, 45.60% in CPs, 29.19% in CDs and 6.05% in cash, cash equivalents and net current assets.
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