HDFC Equity Fund Review

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HDFC Equity Fund, from one of the leading mutual fund house HDFC, was launched in 1995 and since then it has been one of the top performing fund in the multi-cap category. While there are many funds that have been performing over short and medium term, we look at this fund because of its excellent performance over longer period of time.

Snapshot of the fund:

HDFC Equity fund is relatively a large fund managing assets worth US$ 2b( about 10000cr), with S and P CNX 500 index as the benchmark. This fund is basically a multi-cap fund having financials and energy as the top sector holdings. The top holdings include State Bank of India, Icici Bank, ITC, Infy and Tatamotor DVRs. The fund has both dividend and growth option.

Performance:

The fund has given stupendous returns of 21% per annum since inception and its past 3 year and 5 year returns stand at 7% p.a. and 10% p.a. respectively, while the market has gone nowhere in the past 5 years. The 10-year Systematic Investment
Plan (SIP) has given returns of about 24% p.a and one couldn't ask for better performance.

Disciplined Systematic Investment in this fund has certainly generated very good  returns, for a passive investor. For the active investor, investments in this fund when markets are down sharply or during bearish phases will give you spectacular returns. It is one of the best funds to be in, for the long term.There is another equally good performing fund, HDFC Top 200 Fund and you can read more about it here HDFC Top 200 Fund

3 comments:

  1. Excellent Fund and good review. People have good money from thsi fund in the long term.

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  2. only thing I am worried is why this fund investing around 10% in SBI stock?

    ReplyDelete
  3. Yes Karthik,

    High exposure to financial sector and SBI. Not a big concern though, considering the size of the fund.

    ReplyDelete