HDFC MF Asset Allocator Fund of Funds NFO

HDFC MF, currently the second largest MF house in India, has launched a new Fund of Funds.

NFO - HDFC Asset Allocator Fund (A Fund Of Fund)

Investing in Equity Oriented Schemes 40℅-80℅,  Debt Oriented Schemes 10℅-50℅, Gold fund 10℅-30℅

NFO Opens - 16 April 2021( Friday)

NFO Closes - 30 April 2021(Friday) 

NAV - 10 Rs. Per Unit

The salient features of this fund are as follows:

- The fund of funds will invest in equity and debt schemes of HDFC MF or any other mutual fund house.

- It reduces dependency on a single asset class to generate returns. 

- Each asset class behaves differently across different economic cycle. 

- Gold acts not only as a safe haven asset, but also as a Hedge against currency depreciation and inflation. 

- Taxation applicable for HDFC Asset Allocator Fund of Fund will be of Debt. 

It's Proprietary financial model will consider 4 factors to decide on equity allocation:

1. Trailing Twelve Months Price/Book ratio

2. Earnings Yield/ G-Sec Yield

3. Trailing Twelve Months Price/Earnings ratio

4. 1 Year Forward PE

The fund will decide on allocation between the various asset classes, and also within the various asset classes, using the above model.

Recommended For:

🚩Investors looking for one stop solution for diversified investment needs across asset class AND 

🚩Risk aware investors with an investment horizon of 3 years and above

Books to read

Learning about investing is the best way to avoid losing your hard earned money. The following books have helped me improve my knowledge and also to develop a framework to take the volumes of data out there and process it into meaningful insights related to investing and insurance. 

 This book list will be regularly updated. Also, the links to buy are Amazon Affiliate links. If you find it cheaper elsewhere, do purchase it there. IF you are going to buy on Amazon anyway, do buy using this link so that I get a credit for it (your price will not change). 

The list below is in no particular order: 

 - Fooled By Randomness: Nassim Nicholas Taleb 

 Purchase Links:  Kindle    Book

- The Intelligent Investor: Benjamin Graham

Purchase Links:  Kindle    Book

- Mastering The Market Cycle: Howard Marks

Purchase Links:  Kindle    Book

Read This First

Thank you for visiting my blog. This blog will help you know a little bit more about investing and insurance. 

My name is Girish and I help people invest in mutual funds and buy appropriate insurance cover for themselves and their family. Investments: As you are reading this blog, you have some interest in personal finance. You can save a lot of time, heartburn, and frustration right away if you choose to be a passive investor. Invest your funds in index funds or index ETFs, forget about all news related to finance and grow your money at the index CAGR in to the future. This is advisable to everyone who doesn't use an advisor or MF distributor. 

If you do plan on going the advisor or MFD route, your aim should be simple. Over a time period of a minimum of 5 years, your portfolio should beat the index by at least 1% CAGR. This should be your benchmark for going active over passive. 

What this blog WILL NOT help you be: 

 - The next Warren Buffett, Charlie Munger, Ray Dalio, or any other famous investor 

- Pick the best mutual fund, one that will be the no. 1 fund each day, every day 

- Up to date on financial new. For that, there are many other news sites 

 What this blog might help you be: - Better informed on what insurance products are important for you and your family - Better informed on niche MF products that might not be on your radar - Understand asset allocation strategies - Help you retire early Happy Reading! - Girish