Background: Launched in August 2000, HDFC Income Fund is currently India's largest bond fund. The fund comes in two flavours: growth and dividend plans. Also, the fund has the distinction of having one of the lowest initial investment amount (Rs 500) in the category.
Performance: In a short span of about three years, HDFC Income Fund has consistently beaten most of its peers. In 2001, the fund was up 16.71 per cent and in 2002, it gained 17.21 per cent, beating almost two-thirds of its peers.
The fund's gain of 14.94 per cent annually since launch has benefited investors handsomely. It was also among the few funds which withstood the recent volatility in bond markets.
In the first quarter of 2003, while the category lost 0.02 per cent, the fund gained 0.7 per cent. Overall, till June 27, 2003, the fund
