Master And Student - All About Stock Markets

Once couldn't find better time to write about this top performing fund than now, as its Net Asset Value (NAV) hits all-time high . Yes ! HDFC Top 200 Fund which has outperformed most of the funds in its category, reaches NAV of Rs.200. Though the fund has dividend option and you would have got regular dividends, we are analyzing the performance of the Growth option.

The interesting point to note here is that, the NAV of this fund was Rs.170 when the Sensex hit all-time high of 21,000 in 2008 and now the NAV is Rs.200. Which means even if you had invested in this fund at the peak of 21,000, you are still making good 18% returns above that, while the Sensex is still at 18,000.

Snapshot of the fund:
HDFC Top 200 is an open-ended fund which predominantly invests in BSE 200 stocks, with a higher exposure to Midcap stocks. The entry load is 0% and exit load of 1% if redeemed withing 1 year, after which no exit load. Though the fund size is quite large of about 8000cr, one needn't worry too much its management.

Performance:
The fund has given stupendous returns of 24% per annum since inception and its past 3 year and 5 year returns stand at 16% p.a. and 27% p.a. respectively. The 10-year SIP return is at 32% p.a and one couldn't ask for better performance.

Disciplined Systematic Investment in this fund has certainly generated spectacular returns, which are one of the best for a passive investor. Hence even if you haven't invested in this fund yet, you can invest through a SIP method for long term. It is one of the best funds to be in, for long term.

Watch out for review of this fund and  more such funds in this category.