The HDFC Life Dynamic Advantage Pension Fund is a flexi-cap investment option, available through an NFO from 1st March to 16th March 2025. The fund will be priced at an initial Net Asset Value (NAV) of ₹10. It aims to achieve long-term capital appreciation by investing in a diversified mix of equity, debt, and other market instruments. The fund dynamically adjusts its asset allocation based on market conditions, making it an ideal choice for investors seeking a balance between growth and stability.
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Plans starting from₹1000/month
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Investment Plans
Generate wealthEarn 1 Cr# in maturity with Zero LTCG tax¶
Double tax savings^On premiums (under 80C) and on maturity (under 10(10D))
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
Particulars
Details of HDFC Dynamic Advantage Pension Fund
Objective
To generate long-term capital appreciation by dynamically managing a mix of equity and debt instruments.
Risk Profile
High
NFO Launch Date
1st March 2025
NFO Duration
1st March 2025 – 16th March 2025
Current NAV
₹10 (during NFO period)
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
Particulars
Details
Fund Name
HDFC Life Large Cap Pension Fund
Date of Inception
05 October 2020
Returns Since Inception (RSI)
18.40% p.a.
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.
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.
FAQs
What is the HDFC Dynamic Advantage Pension Fund?
The HDFC Life Dynamic Advantage Pension Fund is a flexible, equity-oriented pension fund that aims for long-term capital growth by dynamically adjusting its investments between equity and debt. It offers tax benefits and is designed to help investors accumulate wealth for retirement.
When will the HDFC Life Dynamic Advantage Pension Fund be available?
The fund will be available through an NFO (New Fund Offer) from 1st March to 16th March 2025, with an initial NAV of ₹10.
What is the investment strategy of the HDFC Dynamic Advantage Pension Fund?
The fund uses an active investment strategy, adjusting its asset allocation between equities, debt, and other market instruments based on market conditions. It aims to provide optimal returns while managing risk.
What is the risk profile of the HDFC Dynamic Advantage Pension Fund?
The fund has a high risk profile due to its equity-oriented investment strategy, making it suitable for investors seeking long-term capital appreciation.
How does the HDFC Life Dynamic Advantage Pension Fund manage market cycles?
The fund dynamically switches between large-caps, mid-caps, and debt instruments depending on market trends. It aims for high growth in bullish markets and shifts to safer investments during market downturns.
What are the tax benefits of investing in the HDFC Dynamic Advantage Pension Fund?
Investors can avail of tax benefits under Section 80C for premiums paid. Additionally, 60% of the corpus is tax-free under Section 10(10D) of the Income Tax Act.
˜Top 5 plans based on annualized premium, for bookings made in the first 6 months of FY 24-25. Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by any insurer. This list of plans listed here comprise of insurance products offered by all the insurance partners of Policybazaar. For a complete list of insurers in India refer to the Insurance Regulatory and Development Authority of India website, www.irdai.gov.in *Past 10 Year annualised returns as on 01-03-2025 *All savings plans are provided by the insurer as per the IRDAI approved insurance plan.
Tax benefit is subject to changes in tax laws. Standard T&C Apply
^The tax benefits under Section 80C allow a deduction of up to ₹1.5 lakhs from the taxable income per year and 10(10D) tax benefits are for investments made up to ₹2.5 Lakhs/ year for policies bought after 1 Feb 2021. Tax benefits and savings are subject to changes in tax laws.
¶Long-term capital gains (LTCG) tax (12.5%) is exempted on annual premiums up to 2.5 lacs. **Returns are based on past 10 years' fund performance data (Fund Data Source: Value Research).
Generate wealthEarn 1 Cr# in maturity with Zero LTCG tax¶
Double tax savings^On premiums (under 80C) and on maturity (under 10(10D))
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