One of the fund industry's sturdiest shops, its performance over time has been strong. Lately, however, it has gravitated towards the back of the pack.
The AMC's temperate ways have served it well over the years. It has been a consistent out performer and has also provided a cushion as the racier ones fell precipitously. But the grouse that investors are harbouring right now is that its performance in the second half of the bull run has disappointed. While it is a fact that the risk-adjusted returns were not as impressive, it is certainly no cause for alarm. This AMC's funds will lag the pack when the market's raciest names lead the charge.
What investors have here is a fund manager who has proved his mettle over various market cycles. In 2003, HDFC Mutual Fund bought out Zurich Mutual Fund. This move turned out to be extremely smart. The AMC was instantly catapulted to the second largest fund house in India. HDFC Mutual Fund not only managed to get this brilliant fund manager on board, but also inherited a great equity portfolio, an aspect that was missing earlier. Prior to the acquisition, HDFC Mutual Fund was focussed on debt offerings.
HDFC Mutual Fund has emerged as one of the most highly reputed AMCs of the country. The funds' performances have an enviable track record. It currently has 9 funds that have either a 5-star or 4-star rating. Recently, the fund house has also been losing talent.
Like others, the AMC seems to have gone on an asset building spree. A surprising move since it always steered clear of the NFO mania. In 2007, it launched a number of funds, including two close-ended equity funds, a mid cap offering and an infrastructure fund.
The AMC's temperate ways have served it well over the years. It has been a consistent out performer and has also provided a cushion as the racier ones fell precipitously. But the grouse that investors are harbouring right now is that its performance in the second half of the bull run has disappointed. While it is a fact that the risk-adjusted returns were not as impressive, it is certainly no cause for alarm. This AMC's funds will lag the pack when the market's raciest names lead the charge.
What investors have here is a fund manager who has proved his mettle over various market cycles. In 2003, HDFC Mutual Fund bought out Zurich Mutual Fund. This move turned out to be extremely smart. The AMC was instantly catapulted to the second largest fund house in India. HDFC Mutual Fund not only managed to get this brilliant fund manager on board, but also inherited a great equity portfolio, an aspect that was missing earlier. Prior to the acquisition, HDFC Mutual Fund was focussed on debt offerings.
HDFC Mutual Fund has emerged as one of the most highly reputed AMCs of the country. The funds' performances have an enviable track record. It currently has 9 funds that have either a 5-star or 4-star rating. Recently, the fund house has also been losing talent.
Like others, the AMC seems to have gone on an asset building spree. A surprising move since it always steered clear of the NFO mania. In 2007, it launched a number of funds, including two close-ended equity funds, a mid cap offering and an infrastructure fund.
