HDFC Core and Satellite Fund

HDFC Core and Satellite Fund is being managed by Vinay Kulkarni from November 2006. This fund’s returns were above average but has reduced in recent periods. Existing investors can exit this fund and shift to a better performing fund in this category. New investors can skip this fund.

Where does HDFC Core and satellite Fund invest your money?

HDFC Core and Satellite Fund is a multi cap fund which invests your money in across large, mid and small cap stocks of high growth companies. HDFC Core and Satellite Fund has 58.13% exposure to giant and large size companies, 23.64% exposure to medium size companies and 13.1% exposure in small size companies. Large cap companies tend to be stable compared to mid cap and small cap companies. Small and mid size companies have the potential to become large companies and when that happens you are expected to get bumper returns.

Suitable for what?
  • Creation of wealth
  • Lifestyle needs
Not suitable for what?
  • Child's marriage
  • Child's education
  • Short term needs
  • Buying house
  • Planning for retirement
Our recommendation for fresh investment
Not Recommended
Our recommendation for existing investment.
Not Recommended
How has HDFC core and satellite fund performed in the past?

If you had invested Rs 1 lakh when the fund was launched in Sep 2004 the value of your investments would be around Rs 3.76 lakhs. If you had invested Rs 1 lakh five years back it would have become Rs 1.30 lakhs. The performance has been poor as compared to other mutual funds in this category. The fund has been giving at around 5.43% every year for those who stayed invested for last 5 years.

Assume you had invested Rs 10,000 every month in HDFC Core and Satellite Fund through SIP for the past 5 years today you would have just around Rs 7.48 lakhs.

What charges apply?

A onetime fee of Rs 100 is charged on investments over Rs 10, 000 made through distributors. If you are a first time investor in mutual funds an additional Rs 50 is charged to cover KYC expenses. This is deducted from your investment and can be skipped if you buy directly from the mutual fund via their website or offices.

If units are sold within a year an exit load of 1% is deducted from your total returns. No exit load applies for units withdrawn post one year. Expense ratio of HDFC Core and Satellite Fund is 2.81%. This is charged to recover the fund management company’s expenses on securities’ transactions, commissions, registrar fees, etc. Your mutual fund returns will be total returns less expense ratio. 

When to exit?

Withdraw when your goals are closer to achievement. Do not remove the money when the markets go up or down. Do not panic. Stick to your goals.

What are the tax implications?

The returns in a mutual fund are absolutely tax free, provided you did not withdraw within 1 year. HDFC Core and Satellite Fund does not qualify for sec 80C ELSS benefits.

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