HDFC Asset Allocator Fund of Funds NFO

Gaurav Seth
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Gaurav Seth

HDFC Asset Allocator Fund of Funds NFO

HDFC Mutual Fund has announced the launch of the HDFC Asset Allocator Fund of Funds. The scheme would be predominantly investing its assets in equity, debt, and gold fund or ETF schemes.

The New Fund Offer (NFO) starts from 16th April 2021 and will end on 30th April 2021. The scheme will reopen for continuous sale and repurchase within 5 business days of allotment.

Investment Objective 

The investment objective of the scheme is to generate long-term capital growth by investing and managing its assets in equity, debt, and gold funds or ETFs.

What are Asset Allocation funds and their benefits?

Asset allocation funds are those funds which invest or diversify their assets in different asset classes like debt, equity, or gold. The fund rebalances the portfolio as per the risk tolerance, time frame, and opportunities in the market.


  1. Each asset class acts differently in the different market or economic cycles.
  2. Investment in various asset classes reduces the risk of the portfolio and dependency to generate returns on a single asset class.
  3. It helps to mitigate the volatility of portfolio returns.


  1. The fund will be investing a minimum of 40% of its assets in equity, , 10% in debt, and 10% in gold funds respectively.
  2. The fund offers exposure to 3 different asset classes.
  3. It will combine the negatively or low correlated assets to construct a portfolio.
  4. The fund will give a small exposure to the money market instruments.

Why Invest in HDFC Asset Allocator Fund of Funds NFO?

  • The fund offers a good option to investors who want diversified asset allocation.
  • The fund offers an active asset allocation through periodic rebalancing and reviews.
  • The fund aims to provide better risk-adjusted returns.
  • The fund will have debt taxation and therefore will offer indexation benefits on long term investments.
  • The diversified portfolio can offer lower volatility in returns.
  • To reduce the risk of the portfolio, the fund combines and invests in the negative or less correlated assets.

Who Should Invest?

This scheme is suitable for investors who are -

  • Interested in long-term capital growth.
  • Investors who want to invest in a well-diversified portfolio.
  • Investors who are looking for a combined investment option which is investing in equity, debt, and gold.
  • Recommended for investors with an investment horizon of 5 years & above.

Asset Allocation Pattern-

InstrumentsMinimum % of total assets (Indicative)Maximum % of total assets (Indicative)Risk Profile
Units of Equity oriented mutual funds 40%80%Low to High
Units of Debt oriented mutual funds10%50%Low to Moderate
Units of Gold ETF schemes10%30%Moderate to High
Debt and money market instruments0%5%Low to Moderate

About the Scheme-

Name of the fundHDFC Asset Allocator Fund of Funds
Fund launched byHDFC Mutual Fund
Asset Management CompanyHDFC Asset Management Company Limited
Type of schemeAn open-ended fund of funds scheme primarily investing its assets in equity, debt, and gold schemes.
Investment ObjectiveThe investment objective of the scheme is to generate long-term capital appreciation by investing its assets in equity, debt, and gold funds or ETFs.
Benchmark90% NIFTY 50 Hybrid Composite Debt 65:35 TR Index + 10% Domestic Price of Gold(based on LBMA)
Entry LoadNot Applicable
Exit Load

-15% of units redeemed or switched out within 365 days - NIL

-More than 15% of units redeemed or switched out within 365 days - 1% of applicable NAV

-If units are redeemed or switched out after 365 days - NIL


Taxed as Non-Equity

-If units are sold within 3 years, gains will be added to income and taxed as per the investor's tax slab

-If units are sold after 3 years, gains are taxed with long-term capital gain tax @20% after indexation benefits

Minimum Application Amount ₹ 5,000 & in multiples of ₹ 1 thereafter
Minimum Additional Amount₹ 1,000 & in multiples of ₹ 1 thereafter
STP & SWPAvailable
Plans Available
  • Regular
  • Direct
  • Growth
  • Dividend Payout
  • Dividend Reinvestment
Fund ManagersMr. Amit Ganatra (For Equity), Mr. Anil Bamboli (For Debt), and Mr. Krishan Kumar Daga (For Gold ETFs)

SIP Details

Type Minimum InstallmentsMinimum Amount
Daily SIP-₹300 & in multiples of ₹1 thereafter
Weekly SIP6₹1,000 & in multiples of ₹1 thereafter
Monthly SIP12Less than ₹1,000
6Greater than ₹1,000
Quarterly SIP12Less than ₹3,000
6Greater than ₹3,000

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