HDFC Cash Mgmt – Min Balance

POSTED BY Kapil ON August 14, 2012 2:24 pm COMMENTS (8)

Hello Experts,

I was planning to move my emergency fund from Savings account to a liquid fund, and hence have finalized on HDFC Cash Mgmt Savings liquid fund.

Well, when I look at the VRO –> HDFC Cash Mgmt Savings –> Fund Details section of it. I find Min Balance as Rs.100,000/-. Also, the min. initial investment is Rs.10,000/-. I am confused.

Here is the link to VRO – http://www.valueresearchonline.com/funds/funddetails.asp?schemecode=695

Can anyone help me in understanding these terms?

I am planning to create an emergency fund for me and put money in liquid fund. Initially, I will be putting around 30k and then will add subsequently as and when I do any savings.

 

Thanks in advance.

Kapil Malhotra

8 replies on this article “HDFC Cash Mgmt – Min Balance”

  1. Kapil says:

    Well, when I go to VRO –> HDFC Cash Mgmt Savings Fund –> Fund Details, this is what I see. I need to start my investment, asap, hence, experts – please provide an answer.

    Investment Details:
    Basics
    Min Investment (Rs) 10000
    Subsequent Investment (Rs) 5000
    Min Withdrawal (Rs) 5000
    Min Balance (Rs) 100000
    Pricing Method Forward
    Purchase Cut-off Time (hrs) 12
    Redemption Cut-off Time (hrs) 15
    Redemption Time (days) 1
    Lock-in —
    Cheque Writing —

      1. Kapil says:

        Thanks Ramesh. I saw this. Should I not be bothered about what VRO is saying?

        Is there a concept of min. balance in funds?

        HDFC site doesn;t talks about any such figure?

        Can I make initial investment of 10,000/- and then redeem 5000/- and let my investment grow? Would there be any charges?

        1. Ramesh says:

          I do not think, there is any minimum balance concept. But just call the hdfc fund people (get the number from their site), and confirm it. The only way to be Sure.

          1. Kapil says:

            That’s where I was heading to. Thanks Everybody

  2. TheZionView says:

    My brother has this fund with balance of 1250.He started with investment of 10000 i guess.

  3. BRSINGH says:

    It means when you start your investment the initial amount should be 1L. After that you can increase your investment or reduce your investment. When you reduce the minimum balance should not be less than 1L.

  4. Karthik says:

    I don’t think there is any such thing as Minimum balance in Mutual funds.
    There are Minimum Initial purchase amount, Minimum Additional Purchase amount and Minimum Redemption amount, I have heard of.
    You can go ahead and purchase the fund for 30k.

    Please check
    http://www.hdfcfund.com/Products/SchemeDetails.aspx?SchemeID=33d0f25d-3f39-4237-a8ac-1f47a6034b38#SchmInfo

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