Investment predominantly in equity and equity related instruments of medium to

Investment predominantly in equity and equity related

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Capital appreciation over long term. Investment predominantly in equity and equity related instruments of medium to large sized companies. The principal of investors will be at moderately high risk. Benchmark Index: NIFTY 500 Minimum application amount is Rs. 5000 and any amount thereafter. Additional Purchase Rs. 1000 and any amount thereafter. The Scheme offers Regular Plan and Direct Plan. Each Plan offers following Options: (iii) Growth Option (iv) Dividend Option with Payout and Reinvestment facility. Default Plan/ Option: Growth Option in case Growth Option or Dividend Option is not indicated. Dividend Payout in case Dividend Payout or Dividend Reinvestment is not indicated. Under normal circumstances, the asset allocation (% of Net Assets) of the Scheme's portfolio will be as follows: Type of Instruments Normal Allocation (% of Net Assets) Risk Profile Equities and equity related instruments 80-100 Medium to High Debt and money market instruments* 0-20 Low to Medium *Investment in Securitized debt, if undertaken, would not exceed 20% of the net assets of the Scheme. The Scheme will invest 40% of its net assets in foreign securities. The Scheme will invest up to a maximum of 25% of its net assets in Derivatives. Performance of the Scheme (as at March 31, 2017) Institute Of Management Development And Research Page 31
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HDFC Equity Fund - Regular Plan - Growth Option Period Returns (%) Benchmark (%) Last 1 Year (365 days) 30.49 23.91 Last 3 Years (1096 days) 17.86 15.22 Last 5 Years (1827 days) 15.73 13.61 Since Inception (8125 days) 19.66 9.79 HDFC Equity Fund - Direct Plan - Growth Option Period Returns (%) Benchmark (%) Last 1 Year (365 days) 31.60 23.91 Last 3 Years (1096 days) 18.80 15.22 Since Inception (1550 days) 16.20 12.84 3.8 HDFC Mutual Fund uses following Measures of Volatility Institute Of Management Development And Research Page 32
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3.8. A) BETA: One measure of the relative volatility of a particular stock to the market is its beta. A beta approximates the overall volatility of a security's returns against the returns of a relevant benchmark (usually the S&P 500 is used). For example, a stock with a beta value of 1.1 has historically moved 110% for every 100% move in the benchmark, based on price level. Conversely, a stock with a beta of 0.9 has historically moved 90% for every 100% move in the underlying index. It is common knowledge that mutual funds are benchmarked against particular market indices. In general, diversified funds are benchmarked against Sensex or Nifty, while sectorial funds are benchmarked against their particular sector index. It is fair to then assume that the ups and downs of any index will affect the funds that are benchmarked against it. In other words, if the Sensex falls, you can expect a diversified fund to fall as well. But while some funds might be affected more by an index's volatility, others might not. So, to get an idea of how volatile a fund is with respect to its index Beta is the measure of a fund's (or stock's) volatility relative to the market or benchmark.
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  • Fall '17
  • Mahvish ali

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