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Saturday, December 12, 2015

HDFC Top 200 Mutual Fund Review

 

HDFC Top 200 Mutual Fund - Invest Online

 

HDFC top 200 mutual fund was launched in the year 1996 in month of September. It is an open ended diversified equity fund with focus on the large cap companies. The portfolio is bench marked against BSE 200. The fund is managed by Prashant Jain who has been managing the stocks for the past 8 years.

HDFC Top 200Nature of investment:

  • According to the experts, 90% of the assets of fund are invested in equity stock and the remaining in the debt instruments.
  • Fund manager has absolute right to buy the stocks of unlisted companies but they should rank among the BSE top 200 in terms of market capitalization.

Performance:

  • For the past one year, the fund has delivered 29.76% annual returns on the investment
  • Similarly for 3 years the rate of growth is 34.23% and for 5 years it is 24.19%.
  • Fund has performed excellently over the years barring 2006 when it couldn't beat the BSE benchmark.
  • Returns in 2009 hovered around 94.46% which was greater than 81.03% of the Sensex.

Comparison with peers

Since it is a large cap mutual fund, we have compared it with DSPBR top100 and birla sun life front line equity.

DSPBR top 100

  • The standard deviation of the fund is about 28.69 while that of HDFC top 100 is 32.3
  • Return to risk ratio is 0.19 while that of HDFC is 0.37

Birla Sun Life Frontline Equity:

  • Fund has displayed a standard deviation of 35.88 over the years
  • Its Sharpe ratio is only 0.07 when compared with HDFC.

The above comparisons indicate that HDFC top 200 is in a different league altogether.

Total asset capitalization:

The latest information available on 31st August 2015 states that the total capitalization is 12,774 CRORE.

Top holdings:

Following are the major large cap companies where are stocks are invested:

  • Infosys
  • State bank of India
  • ICICI bank
  • Larsen and Tubro
  • HDFC bank
  • Maruti Suzuki India
  • ITC
  • Bank of Baroda

Dividends:

  • The latest dividend on the mutual fund was issued on March 5th 2015 at the rate of Rs 5 per unit.
  • Equity scheme has been consistently giving out dividends to the stake holders.

Other charges:

The entry load on the mutual fund is zero while the exit load is 1% of the return if the money is withdrawn before one year.

Risk

  • As far as the risk is concerned, it is below average for the investors.

Why you should buy HDFC Top 200

 

  • If you want to get higher returns at lower risk, the HDFC top 200 can beat any large cap fund hands down.
  • In 2008, when stock market crashed, HDFC top 200 lost only 45% of its value as compared to 50% for the large cap category. It goes to show that it is one of the best performers in its group.

Why you should not buy

  • As seen above the standard deviation of the fund is higher than its peers. Therefore, it is quite volatile resulting in an increase in the downside risk.
  • After deducting the risk factor from the overall returns, the growth doesn't look impressive.

Best Tax Saver Mutual Funds or ELSS Mutual Funds for 2015

1. BNP Paribas Long Term Equity Fund

2. Axis Tax Saver Fund

3. IDFC Tax Advantage (ELSS) Fund

4. ICICI Prudential Long Term Equity Fund

5. Religare Tax Plan

6. Franklin India TaxShield

7. DSP BlackRock Tax Saver Fund

8. Birla Sun Life Tax Relief 96

9. Reliance Tax Saver (ELSS) Fund

10. HDFC TaxSaver

Invest Rs 1,50,000 and Save Tax under Section 80C. Get Good Returns by Investing in ELSS Mutual Funds Online

Invest in Tax Saver Mutual Funds Online

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