HDFC Dynamic Advantage Pension Fund

What is the HDFC Dynamic Advantage Pension Fund?

HDFC Life Dynamic Advantage Pension Fund is a flexible, equity-oriented pension fund designed to deliver long-term growth by dynamically adjusting its investment strategy between equity and debt. The fund primarily focuses on large-cap and mid-cap stocks, aiming for optimal growth while maintaining risk balance. With an impressive track record, it is tailored for investors looking to accumulate wealth for retirement. 

The HDFC Life Dynamic Advantage Pension Fund offers tax-free benefits and is available under HDFC Life’s Smart Pension Plan, launched with an initial NAV of ₹10 during the NFO period.

Highlights of HDFC Dynamic Advantage Pension Fund

What are the Key Reasons to Invest in HDFC Life Dynamic Advantage Pension Fund?

• Flexible Allocation: The HDFC Life Dynamic Advantage Pension Fund offers flexible allocation across equities (large-cap, mid-cap, small-cap) and debt, capturing market opportunities for better returns.

• Returns in Last 10 Years: Large Caps gave 12%, Mid Caps gave 17%, and Small Caps gave 14% average returns.

• Active Management & Adaptability: The fund manager actively switches between market caps, debt, and equity instruments to adapt to changing market cycles and maximize returns.

• Stock Selection & Wealth Preservation: Focuses on companies with strong growth potential and experienced management, aiming to create wealth during market uptrends and preserve it during downturns.

• Diversification & Risk Management: Offers diversification across sectors and market caps, reducing risk and boosting returns while managing market volatility.

• No Constraints & Market Opportunities: With no stock or sector allocation limits, the fund provides access to a wide range of growth opportunities across different market conditions.

• Performance: The previously launched Large Cap Pension Fund has provided 18.4% returns since inception.

• Smart Pension Plan: Available through the HDFC Life Smart Pension Plan, which includes Loyalty Additions for improved returns.

• Tax Benefits: Enjoy 60% of the corpus tax-free under Section 80C and Section 10(10D) of the Income Tax Act.

• Premium Flexibility: There is no cap on premiums, and no medical check-up is required to purchase the plan.

• NFO Launch: The HDFC Life Dynamic Advantage Pension Fund will be launched with an NAV of Rs. 10, and the NFO will open on 1st March 2025 and close on 16th March 2025.

Benefits of Equity-Oriented Pension Plans

• Capital Appreciation: Equity investments have delivered around 14-15% average returns over the last 10 years, helping in wealth creation.

• Inflation Adjusted Returns: Equities offer inflation-beating returns over the long term, protecting real wealth.

• Goal-Based Investing: Equity investments support mid-term to long-term goals by generating higher returns.

Historical Performance of Previously Launched HDFC Life Pension Funds

What are the Benefits of Investing in the HDFC Life Pension Plans?

The HDFC Life pension plans offer several benefits to provide you with financial security. Some of them are listed below:

• Tax Benefits: You can avail of deduction under Section 80CCC for premium paid, and 60% of commutation is exempt under Section 10(10A)(iii).

• Income Deferment & Legacy Planning: The Dynamic Advantage Fund offers an option to defer income via a deferred annuity, resulting in a lower tax rate, and the Return of Premium (ROP) to the nominee is tax-exempt.

• 24-Hour Issuance: The HDFC Life Smart Pension Plan features a simplified proposal form with no medical underwriting, ensuring quick processing and issuance.

How Does HDFC Life Dynamic Advantage Pension Fund Work?

• Active Management: The fund is actively managed across equity and debt based on market conditions, aiming to maximize returns.

• Performance Across Market Cycles: Designed to perform well in different market conditions, the fund adjusts to deliver optimal returns.

• Mid & Small Caps in Bull Markets: When markets are rising, the fund invests in mid-caps and small-caps, which offer high growth and profitability.

• Capital Appreciation in Growth Phases: Mid and small caps deliver strong capital appreciation during market growth periods but may underperform during downturns.

• Large Caps & Debt in Bear Markets: When markets slow down, the fund switches to large-cap stocks and debt to preserve returns and ensure capital protection.

• Downturn Strategy: In a market downturn, large-cap stocks and debt provide better returns and help preserve the generated wealth.

• Market Crash Strategy: In case of a market crash, the fund can move 100% of investments into debt (such as government and corporate bonds) to safeguard returns.

• Asset Allocation Flexibility: The fund can adjust its asset allocation as follows:

  • Equities: 50-100%

  • Cash/Money Market: 0-50%

  • Government Bonds: 0-50%

  • Corporate Bonds: 0-50%

• Flexibility to Adjust Weighting: The fund has the flexibility to go overweight or underweight in mid-caps, small-caps, and large-caps based on market trends.

• Wealth Preservation in Market Volatility: The fund aims to preserve wealth by shifting investments between asset classes during periods of market volatility.

Why Should You Invest in HDFC Life Insurance?

Some of the key reasons to choose HDFC life insurance for your investment planning are mentioned below:

• Assets Under Management (AUM): HDFC Life has ₹3.28 lakh crores in assets under management.

• Solvency Ratio: The company maintains a healthy solvency ratio of 187%, ensuring financial stability.

• Claim Settlement Ratio: HDFC Life has an impressive claim settlement ratio of 99.5%, with claims processed within 24 hours.

• Leader in Insurance: HDFC Life ranks 2nd among the top 10 life insurance players with a total premium of ₹17,506 Crores (20.1% market share) as of YTD Oct'24.

• Parent Company: HDFC, which is India’s largest bank, is the parent company of HDFC Life. It has a network of 600 branches across the country.

How To Buy HDFC Life Dynamic Advantage Pension Fund From Policybazaar?

You can follow the below-mentioned steps to buy the HDFC Life Dynamic Advantage Pension Fund from Policybazaar:

• Step 1- Fill in Your Details: Start by entering your name and contact number in the form on this page. 

NOTE: Your information will remain private and only be used to tailor your benefits.

• Step 2- View Available Plans: Click the "View Plans" button to see the available options.

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• Step 3- Provide Personal Info: After logging in, enter your city, age, and annual income to personalize your benefits.

• Step 4- Select Your Plan: Choose the HDFC Life Dynamic Advantage Pension Fund from the blue and red cards showing the HDFC Life Pension Plans.

• Step 5- Get Details or Consult an Expert: Click the "Get Details" tab for more information. You can also click "Talk to an Expert" for a free consultation.

• Step 6- Review Plan Details: Carefully check the plan details. If satisfied, click "Proceed" and follow the on-screen instructions.

• Step 7- Enter Investment Details: Enter the necessary details and select the amount you want to invest. Choose your preferred payment method.

• Step 8- Complete KYC: Complete your KYC (Know Your Customer) details for compliance.

• Step 9- Finalize Payment: Make the payment, and upon success, you’ll receive a confirmation of your purchase.

What are the Benefits of Purchasing the HDFC Life Dynamic Advantage Pension Fund From Policybazaar?

You can avail of the following benefits by investing in the HDFC Life Dynamic Advantage Pension Fund through Policybazaar:

• Easy Comparison: Policybazaar allows you to compare the HDFC Life Dynamic Advantage Pension Fund with plans from multiple providers in one place.

• Expert Guidance: When you purchase through Policybazaar, you will receive professional advice and dedicated customer support throughout the purchasing process and during claim settlements.

• Exclusive Discounts: Policybazaar offers special discounts and deals on the HDFC Life Dynamic Advantage Pension Fund that are not available directly from insurance companies.

• Trusted Platform: Policybazaar is a reliable platform with years of experience, ensuring that your data is secure and your policies are well managed.

• Quick Online Purchase: Purchasing the HDFC Life Dynamic Advantage Pension Fund online through Policybazaar is quick and easy, saving you time and eliminating the need for middlemen.

• Tax Savings: Many pension plans available through Policybazaar, including the HDFC Life Dynamic Advantage Pension Fund, offer tax benefits under the Income Tax Act.