HDFC Charity Fund for Cancer Cure NFO – Who should invest?

HDFC Charity Fund for Cancer Cure NFO - Who should invest-minHDFC Charity Fund for Cancer Cure NFO – Who should invest?


HDFC has launched HDFC Charity fund for cancer cure mutual fund scheme which aims to benefit cancer patients. This is HDFC AMC 3rd fund which supports cancer patients. HDFC Charity Fund for Cancer Cure Mutual fund scheme opened last week. This NFO would close this week. What is this HDFC Charity Fund for Cancer Cure Mutual Fund all about? What are the various options available in HDFC Cancer Cure Mutual Fund Scheme? Who should invest in such mutual fund schemes? Why I am writing this article about this NFO?

Also Read: Top 10 Mutual Funds to invest for Diversified Portfolio

Features of HDFC Cancer Cure Mutual Fund Scheme


  • This NFO opened on 10th March, 2017 for subscription.
  • This scheme would close on 24th March, 2017.
  • This is close ended capital protection scheme for 3 years i.e. 1136 days. Means you cannot invest after the NFO closure date.
  • Minimum investment is Rs 50,000 and in multiples of Rs 1,000 there-of.
  • Investors can choose debt plan or arbitrage plan.
  • This scheme comes only with dividend option.
  • Investors can contribute 50% or 100% of dividend received through this mutual fund scheme towards treatment of cancer patients.
  • CRISIL rates this NFO as AAA (os).

Background of HDFC Cancer Cure Mutual Fund Scheme


HDFC AMC has launched 2 similar funds ealier in 2011 and 2014. HDFC AMC has worked with 16 hospitals and funded for over Rs 80.68 Crores and helped 3,168 cancer patients in the last 6 years. They provide financial assistance to the cancer patient family whose annual income is less than Rs 1 Lakh per annum. Maximum amount sanctioned is Rs 4 Lakhs and it is mostly towards cost of treatment for cancer. HDFC AMC has waived of all management fees and other fund charges supporting this scheme. It also contributes Rs 15 Crores every year to such fund. This is unique mutual fund scheme as there is no other scheme with such objectives.

What are the options available in this scheme?


HDFC Cancer Cure mutual fund comes with 2 options

1) HDFC Charity Fund for Cancer Cure – Arbitrage Plan

To generate regular income over the tenure of the Scheme (1136 days)

Income through arbitrage opportunities between cash and derivative market and through investments in debt and money market instruments.

2) HDFC Charity Fund for Cancer Cure – Debt Plan

To generate regular income over the tenure of the Scheme (1136 days)

Investments in Debt/Money Market Instruments and Government Securities.

What are the investment sub options available in this scheme?


Under these each plan, there would be Direct Option & Regular Option. Both Plans offer only Dividend Option with Payout facility with the following sub-options:

• 50% Dividend Donation Option

• 100% Dividend Donation Option

Dividends will be declared on a half yearly frequency, subject to availability of distributable surplus. Dividends will be donated to the corpus of ICS or any other eligible institution, as applicable.

Also Read: How good is Aegon Religare iCancer Care Plan?

What is the taxation structure on the returns of this mutual fund scheme?


There are 2 taxes applicable for debt funds. For this scheme, taxation structure would be as follows:

Arbitrage Funds – Dividend distribution tax and long term capital gains are NIL.

Debt funds – Dividend Distribution tax is 28.84% of the dividend received and 23.69% is long term capital gains on such returns.

Why I am writing about such HDFC Cancer Cure NFO scheme?


Generally, I don’t write about New Fund Offers unless they are unique. There are 2 main reasons why I am writing this article.

1) My father in law expired more than 20 years back. My mother-in law who was alone for several years was spending time at her daughters house. She was diagnosed with cancer 5 years back. Cancer is not a small disease. It would ruin your financial life and no guarantee that one would survive inspite of quality treatment. Since it was in advanced stage, inspite of spending money, she could not survive. In the last few years she keeps saying that she want to live for some more time in this world. Chemotherapy and medicines helped to survive for couple of years, but finally she left this world. My spouse and self experienced the pain in the process of treatment as she was with us in those last years. Money was secondary.

2) Cancer patients need 2 things. First is money, which can help them for better treatment so that they can survive for some more years in this world. Second is the support from the family to see that such treatment is provided to them on time. This mutual fund scheme helps in step-1 of providing financial support to families who cannot afford it. Hence I felt this scheme provides good cause by donating some money received through the returns.

HDFC cancer cure mutual fund scheme-min

Also Read: Top Mutual Fund Schemes from Motilal Oswal AMC

Who can invest in HDFC Cancer Cure Mutual Fund Scheme?


Though this is an investment scheme, however, the cause is different. If you are willing to support cancer patients by donating 50% or 100% dividend from the mutual fund scheme returns, you SHOULD invest in this scheme. I would like to contribute some amount towards this scheme.

More info can be obtained at this link.

Are you contributing to this social cause?

If you enjoyed this article, share it with your friends and colleagues through Face book and Twitter.

Suresh

HDFC Charity Fund for Cancer Cure NFO – Who should invest

4 comments

  • finvision

    Dear Sureshji
    Thanks for sharing info @right time
    I lost my mother to cancer
    contributing 50k towards HDFC Cancer Cure Mutual Fund scheme
    to support cancer patients by donating thru 100% dividend Donation Option
    Request your blog followers to come forward for this noble cause
    Please note -investors – your original investment is not disturbed & you can redeem after 3yrs or continue to support the cause in future

  • Mr.Ray

    Thanks for this article, after looking HDFC PDF, I see that only 14% to 17% of total corpus is being used for treatment of cancer. that is quite low and doesn't fit the intention of cause. Also they have not mentioned how much dividend they have given every six months. What are hidden charges?

  • JAIRAJ MP

    Minimum investment amount is on the higher side.

  • Rajkumar

    Nice information

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