HDFC has this Index Fund - Sensex Plan which has this phrase “Post Addendum” which i don’t usually see in other mutual funds. What is this?Is it something that i should consider from a risk standpoint?
Found a recent discussion about this topic on Reddit -
As per that thread, changes were made to the Key Information Memorandum and Scheme Information Document after the launch of this fund through an addendum.
So what was that change? Does that change impact anything for an investment standpoint?
Not completely sure, but it might have had something to do when this scheme was merged with another scheme in 2018 -
Thanks for the document, I went through it and here is the summary which I could grasp:
Basically HDFC had 2 plans within the category of a sensex index fund and as per SEBI ruling they had to keep only one. Hence post this addendum it was merged and only one sensex index fund is now present
The 2 old schemes were:
- SENSEX Plan (Face Value per Unit is ` 32.161) : To generate returns that are commensurate with the performance of the SENSEX,
subject to tracking errors.
- SENSEX Plus Plan (Face Value per Unit is ` 32.161) : To invest 80 to 90% of the net assets of the Plan in companies whose securities
are included in SENSEX and between 10% & 20% of the net assets in companies whose securities are not included in the SENSEX.
So I can conclude that this addendum has no impact. Hdfc sensex plan is now a regular index fund which tracks the sensex just like any other sensex index fund
I hope my interpretation is correct
Thanks a lot man