HDFC Short Term Debt Fund: Low Risk and Fixed Returns

HDFC Short Term Debt Fund is a short duration mutual fund scheme which invests in debt and money market instruments with low duration maturity. Formerly, the fund was named as HDFC Short-term Opportunities Fund. It provides lower interest rates as compared to the long-term funds. Considering the risk-measure, HDFC Short Term Debt Fund offers low risk-appetite which is perfectly suitable for risk-averse investors.

This mutual fund scheme was established on 25th Jan 2010 to provide capital appreciation to the investors in a short-term duration.

HDFC Short Term Debt Fund: Fund Manager

Mr Anil Bamboli is the fund manager of HDFC Short Term Debt Fund since Jun 2010. Prior to joining HDFC Short Term Debt Fund, he has worked with SBI Fund Management for 11 years. Mr Bamboli has a Masters in Management Studies (Finance) and a Graduation degree in Cost and Works Accountant from ICWAI. He is also a Chartered Financial Analyst from Association for Investment Management and Research, U.S.A.

HDFC Short Term Debt Fund: Investment Objective

The investment objective of HDFC Short Term Debt Fund is to produce capital appreciation and income by investing in debt securities and money market instruments. The maturity of the average portfolio of this fund is less than two years. The interest on paper holdings generates the income for the fund. Considering the short-term fund category of low-duration fund, this involves a low level of risk on the market volatility.

HDFC Short Term Debt Fund: Portfolio Construction

There are total 123 securities which are higher than the average category securities of 56 in the portfolio. The highest and the lowest number of securities in a year were 149 and 123, respectively as on 2nd Nov 2018. The average maturity of all the securities is 1.34-years.

HDFC Short Term Debt Fund has approximately 87.75% of investment in AAA-rated securities, followed by 5.64% in cash equivalent, 5.34% in AA-rated, and 1.26% in SOV.

The top 5 holdings of the fund are National Bank for Agriculture and Rural Development (debenture), Indiabulls Housing Finance Limited (debenture), ONCG Petro Additions Limited (debenture), Tata Sons Limited (debenture), and Power Finance Corporations Ltd (debenture).

HDFC Short Term Debt Fund Growth: Past Performance

Since inception, HDFC Short Term Debt Fund has performed well and maintained an annualised rate of returns at 8.51% as on 2nd Nov 2018. In last years, the fund has beaten the category average with 1-2 percentage point.

Considering the last 1-years returns of this HDFC mutual fund scheme, it has generated a trailing rate of returns at 5.48% which is 0.79% higher than the benchmark and 1.97% than the category’s average.

In the last 3-years, HDFC Short Term Debt Fund has produced a 7.29% annualised rate of returns which is 0.18% and 1.58% higher than the index and category’s average respectively.

HDFC Short Term Debt Fund is an excellent choice for investors who want to generate capital appreciation in a short-term with low risk-appetite by investing in debt and money market instruments. Investors can invest in the scheme through MySIPonline. With the help of SIP Calculator, you can also calculate the SIP investment amount for mutual fund schemes before investing in any mutual fund through SIP. You can also consider a list of top performing mutual funds at our platform before taking an investment decision.