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(Article from Business line published on 17 th January 2015)
Presented by
Vishnu Sankar S
0.76
23.32
75.92
Equity
Debt
Cash & Cash
Eq.
In the bear market of 2008, when the average balanced fund lost over
40 per cent in value, HDFC Multiple Yield suffered just a 3 per cent fall
in its NAV.
In 2010 and 2011, which were not-so-great years for debt funds, HDFC
Multiple Yield still managed returns of 11 and 6 per cent, respectively.
The fund has had only one down year since its launch in late 2004 a
good bet for conservative investors looking for a double-digit return.
3.34
38.47
58.19
Equity
Debt
Cash & Cash
Eq.
Though low on credit risk, the debt portion features a fairly long
duration (8.5 years in end November 2014), which increases
interest rate risk but may enable it to make the most of a falling
rate scenario.
The fund now sports a one-year return of 35 per cent, three-year
return of 18 per cent and a five-year return of 12 per cent, ahead of
the balanced fund category, despite a much lower risk profile. It has
suffered two years of losses in the last 10 years, with a 24 per cent
fall in its NAV in the bear market of 2008. Investments in the fund
carry a three-year lock-in period and are eligible for section 80C tax
Equity
Debt
Cash & Cash Eq
34.9
65.1
But the fine-tuning of the asset allocation strategy after that has