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HDFC Short Term Opportunities Fund

 HDFC Short Term Opportunities scheme seeks to generate regular income through investment in debt securities and money market instruments.


With one- and three-year returns at 8.7 per cent and 9.1 per cent, respectively, the fund has almost matched its benchmark returns over three years and is ahead of its category by 14 basis points.


HDFC Short Term Opportunities Fund mostly relies on short-term corporate debt for returns, with sovereign exposures at 10-12 per cent in the past one year. But it maintains a very conservative portfolio, both on credit quality and duration. Unlike some peers, the fund also minimises the interest-rate risk by maintaining a very low average maturity of 1.4-1.7 years in the last one year. This is lower than the category average of 2.4 per cent.


HDFC Short Term Opportunities Fund very reasonable expense ratio of 0.36 per cent on the regular plan is another contributor to good returns. The direct plan features a 0.21 per cent expense ratio.


HDFC Short Term Opportunities Fund asset size, at Rs 9,788 crore, makes it one of the biggest in the category.




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