Skip to main content

HDFC Top 200 Fund - Purchase Online

Download Tax Saving Mutual Fund Application Forms

Invest In Tax Saving Mutual Funds Online

Buy Gold Mutual Funds

Leave a missed Call on

94 8300 8300

 

HDFC Top 200 Fund

This fund from HDFC AMC, the largest asset management company in India, invests in companies with large market capitalization, primarily from the BSE 200 basket. The fund's large-cap, quality-oriented portfolio mix ensured strong performance across different market cycles in the last 18 years. The fund may be lagging behind the top performing peers in the very short term, but over the long term HDFC Top 200 fund has clearly outperformed many of its peers. See the chart below, for the comparison of annualized returns over one, three, five and ten year periods, between HDFC Top 200, the large cap funds category and the benchmark index BSE 100

 

HDFC Top 200 Fund – Fund Overview

This fund is suitable for investors looking for high capital appreciation over a long time horizon, for long term financial objectives, such as retirement planning, children's education etc. Since this is a large cap fund downside potential in market downturns is limited to an extent. Launched in 1996, this HDFC Top 200 is one of the oldest and most popular schemes in its category. It has a huge AUM base of over Rs 10,000 crores. The expense ratio of the fund is 2%. HDFC AMC is the largest asset management company in India, is widely recognized as amongst the best performers across most mutual fund categories. The fund is managed by industry veteran, Prashant Jain (since 2003), and Rakesh Vyas. Prashant is known as one of the best fund managers in the industry with keen eye for buying high quality stocks at attractive valuations and holding them for long term capital appreciation. Prashant has a long term outlook and sticks to his conviction, even at the cost of short term underperformance. The current NAV (as on Feb 21 2014) is 243.2 for the growth plan and 39.4 for the dividend plan.

Portfolio Construction

The portfolio stocks belong largely to the BSE 200 basket. However, the portfolio weights from a stock and sector perspective differs from the index weights, to generate superior returns over time. The portfolio has a long term high growth focus. From a sector perspective, the fund managers are overweight on the BFSI sector, with substantial exposure also to energy, IT, automobile and FMCG. The portfolio bias to cyclical sectors explains the short term relative underperformance. However, as the investment cycle revives, the portfolio is expected to generate handsome returns. the In terms of company concentration, the portfolio is fairly well diversified with its top 5 holdings, Infosys, ICICI Bank, SBI, Reliance Industries and ITC accounting for about 33% of the total portfolio value.

 

Risk & Return

From a risk perspective, the volatility of the fund is on the higher side. The annualized standard deviations of monthly returns of HDFC Top 200 fund for three to ten year periods are in the range of 20% and 25% respectively, which is on the higher side relative to the large cap funds category in the 3 to 5 year period. While the high volatility is a watch out for the fund from a risk perspective, the risk adjusted return is very attractive. On a risk adjusted basis, as measured by Sharpe Ratio, the fund has outperformed the diversified category. Sharpe ratio is defined as the ratio of excess return (i.e. difference of return of the fund and risk free return from Government securities) and annualized standard deviation of returns. Higher the Sharpe ratio better is the risk adjusted performance of the fund. See charts below for comparison of volatilities and Sharpe ratios between HDFC Top 200 fund and large cap funds

 

In terms of consistency, the HDFC Top 200 has outperformed the benchmark every year for the last 10 years, across different market cycles (both in bull and bear markets). See chart below, for annual returns of HDFC Top 200 fund and BSE 100 index over the last 10 year period (2003 to 2013)

 

Dividend Pay out Track Record

HDFC Top 200 fund has an excellent dividend pay out track record. Since 2000 the fund has paid dividends every year, except 2005.

SIP and Lump Sum Returns

The chart below shows returns as on Feb 14 2014 (NAVof 243.2) of Rs 5000 monthly SIP in the HDFC Top 200 fund Growth Plan, for respective years starting since inception in 1996. The SIP date has been assumed to first working day of the month. The amounts are shown in Rs lakhs.

 

The chart above shows that a monthly SIP of Rs 5000 in the fund since inception would have grown to Rs 87 lakhs, while the investor would have invested a little over Rs 10 lakhs. If the investor had started the SIP ten years, his or her investment would be worth over Rs 14 lakhs, while the investor would have invested only Rs 6 lakhs. This shows the power of compounded returns from the HDFC Top 200 fund. If the investor had invested a lump sum amount of Rs 1 lakh in the NFO, his or her investment would have grown over twenty four times to Rs 24.3 lakhs

The HDFC Top 200 Fund has delivered nearly 18 years of strong performance and is considered a top pick in many investor portfolios. With equity markets showing definite signs of bullishness, the long term appreciation potential of the fund looks very positive. However, investors need to have a long time horizon while investing in this fund. Given the investment approach, the fund may underperform in the short term. Investors with aggressive risk profiles, who are looking for long term capital appreciation or regular dividends, can consider investing in the scheme through the systematic investment plan (SIP) or lump sum route with a long time horizon. Investors should consult with their financial advisors, if this scheme is suitable for their financial planning objectives

For further information contact Prajna Capital on 94 8300 8300 by leaving a missed call

Leave a missed Call on 94 8300 8300

Leave your comment with mail ID and we will answer them

OR

You can write back to us at

PrajnaCapital [at] Gmail [dot] Com

---------------------------------------------

Invest Mutual Funds Online

Invest Any Mutual Fund Online

Download Mutual Fund Application Forms from all AMCs

Download Mutual Any Fund Application Forms

---------------------------------------------

Best Performing Mutual Funds

    1. Largecap Funds Invest Online
      1. DSP BlackRock Top 100 Fund
      2. ICICI Prudential Focused Blue Chip Fund
      3. Franklin India Bluechip
      4. ICICI Prudential Top 100 Fund

B. Large and Midcap Funds Invest Online

      1. ICICI Prudential Dynamic Plan
      2. HDFC Top 200 Fund
      3. UTI Dividend Yield Fund
      4. Birla Sun Life Front Line Equity Fund
      5. Franklin India Prima

C. Mid and SmallCap Funds Invest Online

      1. Reliance Equity Opportunities Fund
      2. DSP BlackRock Small & Midcap Fund
      3. Sundaram Select Midcap
      4. IDFC Premier Equity Fund
      5. Birla Sun Life Dividend Yield Plus
      6. SBI Emerging Businesses Fund
      7. HDFC Mid-Cap Opportunities Fund
      8. ICICI Prudential Discovery Fund

D. Small and MicroCap Funds Invest Online

      1. DSP BlackRock MicroCap Fund
      2. Franklin India Smaller Companies

E. Sector Funds Invest Online

      1. Reliance Banking Fund
      2. Reliance Banking Fund
      3. ICICI Prudential Banking and Financial Services Fund

F. Tax Saver Mutual Funds Invest Online

1. ICICI Prudential Tax Plan

2. HDFC Taxsaver

      1. DSP BlackRock Tax Saver Fund
      2. Reliance Tax Saver (ELSS) Fund

G. Gold Mutual Funds Invest Online

      1. Relaince Gold Savings Fund
      2. ICICI Prudential Regular Gold Savings Fund
      3. HDFC Gold Fund
      4. Birla Sun Life Gold

H. International funds Invest Online

1. Birla Sun Life International Equity Plan A

2. DSP BlackRock US Flexible Equity

3. FT India Feeder Franklin US Opportunities

4. ICICI Prudential US Bluechip Equity

5. Motilal Oswal MOSt Shares NASDAQ-100 ETF

Popular posts from this blog

Am you Required to E-file Tax Return?

Download Tax Saving Mutual Fund Application Forms Invest In Tax Saving Mutual Funds Online Buy Gold Mutual Funds Leave a missed Call on 94 8300 8300   Am I Required to 'E-file' My Return? Yes, under the law you are required to e-file your return if your income for the year is Rs. 500,000 or more. Even if you are not required to e-file your return, it is advisable to do so for the following benefits: i) E-filing is environment friendly. ii) E-filing ensures certain validations before the return is filed. Therefore, e-returns are more accurate than the paper returns. iii) E-returns are processed faster than the paper returns. iv) E-filing can be done from the comfort of home/office and you do not have to stand in queue to e-file. v) E-returns can be accessed anytime from the tax department's e-filing portal. For further information contact Prajna Capit...
Read more

IDFC - Long term infrastructure bonds - Tranche 2

IDFC - Long term infrastructure bonds What are infrastructure bonds? In 2010, the government introduced a new section 80CCF under the Income Tax Act, 1961 (" Income Tax Act ") to provide for income tax deductions for subscription to long-term infrastructure bonds and pursuant to that the Central Board of Direct Taxes passed Notification No. 48/2010/F.No.149/84/2010-SO(TPL) dated July 9, 2010. These long term infrastructure bonds offer an additional window of tax deduction of investments up to Rs. 20,000 for the financial year 2010-11. This deduction is over and above the Rs 1 lakh deduction available under sections 80C, 80CCC and 80CCD read with section 80CCE of the Income Tax Act. Infrastructure bonds help in intermediating the retail investor's savings into infrastructure sector directly. Long term infrastructure Bonds by IDFC IDFC issued an earlier tranche of these long term infrastructure bonds on November 12, 2010. This is the second public issue of long-te...
Read more

Section 80CCD

Top SIP Funds Online   Income tax deduction under section 80CCD Under Income Tax, TaxPayers have the benefit of claiming several deductions. Out of the deduction avenues, Section 80CCD provides t axpayer deductions against investments made in specific sector s. Under Section 80CCD, an assessee is eligible to claim deductions against the contributions made to the National Pension Scheme or Atal Pension Yojana. Contributions made by an employer to National Pension Scheme are also eligible for deductions under the provisions of Section 80 CCD. In this article, we will take a look at the primary features of this section, the terms and conditions for claiming deductions, the eligibility to claim such deductions, and some of the commonly asked questions in this regard. There are two parts of Section 80CCD. Subsection 1 of this section refers to tax deductions for all assesses who are central government or state government employees, or self-employed or employed by any other employers. In...
Read more

ULIP Review: ProGrowth Super II

  If you are interested in a death cover that's just big enough, HDFC SL ProGrowth Super II is something worth a try. The beauty is it has something for everybody — you name the risk profile, the category is right up there. But do a SWOT analysis of the basket, and the gloss fades     HDFC SL ProGrowth Super II is a type-II unit-linked insurance plan ( ULIP ). Launched in September 2010, this is a small ticket-size scheme with multiple rider options and adequate death cover. It offers five investment options (funds) — one in each category of large-cap equity, mid-cap equity, balanced, debt and money market fund. COST STRUCTURE: ProGrowth Super II is reasonably priced, with the premium allocation charge lower than most others in the category. However, the scheme's mortality charge is almost 60% that of LIC mortality table for those investing early in life. This charge reduces with age. BENEFITS: Investors can choose a sum assured between 10-40 times the annualised premium...
Read more

Mutual Fund Review: HDFC Index Sensex Plus

  In terms of size, HDFC Index Sensex Plus may be one of the smallest offerings from the HDFC stable. But that has not dampened its show, which has beaten the Sensex by a mile in overall returns   HDFC Index Sensex Plus is a passively managed diversified equity scheme with Sensex as its benchmark index. The fund also invests a small proportion of its equity portfolio in non-Sensex scrips. The scheme cannot boast of an impressive size and is one of the smallest in the HDFC basket with assets under management (AUM) of less than 60 crore. PERFORMANCE: Being passively managed and portfolio aligned to that of the benchmark, the performance of the index fund is expected to follow that of the benchmark and in this respect, it has not disappointed investors. Since its launch in July 2002, the fund has outperformed Sensex in overall returns by good margins.    While every 1,000 invested in HDFC Index Sensex Plus in July 2002 is worth 6,130 now, a similar amount invested in Sensex then wo...
Read more
Related Posts Plugin for WordPress, Blogger...
Invest in Tax Saving Mutual Funds Download Any Applications
Transact Mutual Funds Online Invest Online
Buy Gold Mutual Funds Invest Now