Morningstar Mutual Fund Guide
HDFC High Interest S/T Fund
Fixed-Income Stats
Investment Strategy
S
hobhit Mehrotra is an experienced
and skilled manager. He has over 25
years experience in credit analysis and
fund management. He has been with
HDFC since February 2004 and has been
running this fund since September 2007.
Mehrotra adopts a ‘buy-and-hold’
approach and usually refrains from
churning the portfolio often. He looks
to add value through security selection
rather than taking large duration bets. He
maintains the fund’s average maturity in
the range of two-four years. However, he
does take duration bets at times, albeit in
a constrained manner.
The investment team focuses on
company management, financial
strength of the promoter group and
corporate governance standards.
Meetings with management are
followed by rigorous quantitative analysis
to get a measure of the company’s
creditworthiness. The team studies the
company’s cashflow and relevant ratios
– leverage, coverage, and solvency. The
fund company uses a proprietary model
in which qualitative and quantitative
inputs are used to arrive at a credit score
for each issuer. This helps managers
determine the exposure they can take
to each issuer, thereby, acting as a risk-
management tool. Here the investment
team lays more emphasis on risk control,
thereby focusing on balancing safety,
liquidity and return.
Investment in sub-AAA rated securities
hovers in the range of 30-35 per cent, but
largely in names where the investment
team has a high conviction. The fund is an
excellent option for investors looking for
short term investments for 1-3 years with
limited volatility.
Calendar Year Returns
11.5
11.2
8.2
9.3
7.4
7.0
6.9
6.6
Calculation Benchmark: None
10.0
8.0
5.5
6.0
4.9
4.0
2.0
0.2 0.5
0.0
YTD
2017
HDFC High Interest S/T Gr
2016
2015
2014
India Fund Short-Term Bond
2013
High Ltd
-
2.8
8.2
-
AA
Fixed Inc Style Box (Long)
Average Eff Duration
Average Eff Maturity
Average Coupon
Average Price
Average Credit Quality
Fixed Income Style Box
High
Med
Low
Ltd
Mod
Ext
Top Holdings
HPCL-Mittal Energy Limited
Tata International Limited
Reliance Utilities And Power
Private Limited
Indiabulls Housing Finance
Limited
National Bank For Agriculture
And Rural Development
HDFC Bank Limited
Housing Development Finance
Corporation Limited
Syndicate Bank
6.79% Govt Stock 2027
Rural Electrification
Corporation Limited
Portfolio
Weighting
(%)
4.71
4.29
3.51
2.98
2.77
2.75
2.74
2.49
2.45
1.63
Fund Snapshot
Morningstar Category
Trailing Returns
Data Point: Return Calculation Benchmark: None
YTD 1 Year 3 Years 5 Years 10 Years
HDFC High Interest S/T Gr 0.21 5.27 7.59 8.30 8.61
India Fund Short-Term Bond 0.47 4.67 6.32 7.05 7.11
India Fund
Short-Term Bond
Fund Size (`)
18.1 billion
Inception Date
6/2/2002
Annual Report Net Expense Ratio
1.19
Morningstar Rating Overall
*****
Manager Name
Multiple
Minimum Investment (`)
5,000
Morningstar Analyst Rating
Gold
Disclaimer
@2017. All rights reserved. The Morningstar name and logo are registered marks of Morningstar, Inc. This Report is issued by Morningstar Investment
Adviser India Private Limited (“Morningstar”), which is registered with SEBI (Registration number INA000001357) and provides investment advice
and research. Please visit http://www.outlookindia.com/outlookmoney/invest/picking-the-right-mutual-funds-2542 and read important
statutory disclosures, as mandated by SEBI, regarding the information, data, analyses and opinions given in this report.
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