HDFC Index Fund - SENSEX Plus Plan

HDFC Index Fund - SENSEX Plus Plan is managed by Vinay Kulkarni. He has a fairly good track record. But the fund failed to maintain its good performance and has gone below the category average. Existing investors can exit the fund and new investors can definitely look for better funds in this category.

Where does HDFC Index Fund - Sensex Plus Plan invest your money ?

HDFC Index Fund- Sensex Plus Plan is an index fund which means most of your money will be invested in Sensex stocks in a proportion that is as close as possible to the weightages of these stocks in the Sensex. The remaining will be invested in stocks that have a high probability of outperforming the Sensex. About 83.98% of the fund’s money is allocated to stocks of large companies, 8.7% to those of medium size companies and 7.32% to those small size companies.

Suitable for what?
  • Child's education
  • Child's marriage
  • Planning for retirement
  • Home Purchase
Not suitable for?
  • Creating wealth
  • Short term needs
  • Lifestyle needs
Our recommendation for fresh investment
Not Recommended
Our recommendation for existing investment
Not Recommended
How has HDFC Index Fund - SENSEX Plus Plan performed in the past?

If you had invested Rs 1 lakh when the fund was launched in July 2002, your value of investments would be around Rs 19.93 lakhs. If you had invested Rs 1 lakh for 5 years, your value of investments would be around Rs 1.36 lakhs. The performance has not been better than many other large cap mutual funds. The fund has been giving at around 6.36% every year for those who stayed invested for last 5 years. 

Assume you had invested Rs 10,000 every month in HDFC Index Fund- SENSEX Plus Plan through SIP for the past 5 years today you would have around Rs 8.03 lakhs.

When to review the performance?

Once you invest in the fund do not get into the habit of checking the NAV daily or monthly. Review the performance once a year. Too much attention is not good.

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 30 days 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 No exit load applies for units withdrawn post one year.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 Index Fund- SENSEX Plus Plan is 1.05%. 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 enter?

Now! There is no good time to invest rather than now. Do not try to time the market and especially so if it is an SIP. Do not follow news channel and other experts to know the right time to invest. In the long run it does not matter. Mutual fund is unlike a stock where you are looking at the right price. This job will be done by the mutual fund scheme manager. If you have planned your investments and decided on the amount you want to invest do not think further, just go ahead.

When to exit?

Withdraw when your goals are close 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 an equity mutual fund are absolutely tax free, provided you did not withdraw within 1 year.

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