InvestorQ : Which is better one of Motilal Oswal Nifty Bank Fund and HDFC Retire fund?
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Which is better one of Motilal Oswal Nifty Bank Fund and HDFC Retire fund?

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IIFL Expert answered.
2 years ago
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First of all, both the schemes are very different and therefore are not comparable. Moreover, it not specified as to which category of HDFC Retirement Savings Fund (equity/hybrid/debt) is being mentioned here.

HDFC Retirement Savings Fund is a retirement solution-oriented scheme with a lock-in period of 5 years or until retirement age (whichever is earlier). Therefore, investors looking to invest in this fund must have a minimum investment horizon of 5 years. 

They should also evaluate their risk profile as this fund is available in three categories that are equity (aggressive), hybrid (balanced) and debt (conservative). On the other hand, Motilal Oswal Nifty Bank Index Fund is a sector-based index fund that predominantly invests in banking and financial services companies. 

Sectoral funds are very risky and are suitable only for those investors who have a huge appetite for market volatility and have an investment horizon of 8-10 years. Both are open-ended schemes.
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