Skip to main content

Mutual Fund Review: HDFC Growth

 

 

Savvy stock selection has helped the fund emerge as a good long-term bet

 

This fund may not have had a smooth ride but has emerged as one of the better players in this category.

 

After an uneventful start in its initial years, the fund began to get noticed in 2006, when the current manager assumed charge. It turned out to be a category outperformer over the following years and even contained the downside well in 2008.

 

Savvy sector selection has been a testament to Srinivas Rao Ravuri's skills. In 2006, while his peers were neutral towards Healthcare, the fund's increased allocation to it on the back of concentrated bets in Sun Pharma and Divi's Laboratories helped. Similarly, the fund defied popular trend and pruned allocation to Financial Services while increasing it to Automobiles.

In 2007, the fund was more into Healthcare and Basic-Engineering while its peers were into Metals. As the category as a whole increased exposure to diversified companies, this fund moved out of them altogether. A similar pattern followed in 2008.

But in 2009, the fund lagged behind with a return of 75 per cent (category average: 83%). The recovery caught Ravuri off guard. Despite the equity market starting its upward journey in March 2009, the fund barely lowered exposure to defensive sectors (Healthcare and FMCG) last year. Besides Tisco or Infosys, he kept away from Metals or IT. To add to it he held an average 12 per cent in cash for the three months ended July 2009. "I was focussed on companies that depend on domestic demand and have strong balance sheets. I was cautious on sectors dependent on the global market recovery," he says. "Commodities are extremely volatile and prices were dependent on economies in Europe and China. In IT, I was wary of exposure to companies that got the bulk of their revenues from the global financial services sector."

 

Besides sector bets that set him apart, he also has holdings in stocks which are not too popular, such as C&C Constructions, Solar industries, Ahmednagar Forgings, KNR Constructions and Technocraft Industries India. "Since I am also an analyst and we have a strong research team, we are capable of coming up with good stock ideas that are not covered by broking firms. Stock selection is based on attractiveness of business, quality of management and valuations," he says. The small size of his fund helps by allowing greater flexibility.

 


Popular posts from this blog

Post Office Deposits Interest Rates

Best SIP Funds to Invest Online   SIPs are Best Investments when Stock Market is high volatile. Invest in Best Mutual Fund SIPs and get good returns over a period of time. Know Top SIP Funds to Invest Save Tax Get Rich For further information on Top SIP Mutual Funds contact  Save Tax Get Rich on 94 8300 8300 OR You can write to us at Invest [at] SaveTaxGetRich [dot] Com

HDFC Capital Protection Oriented Fund – Series II 36M May 2014 NFO

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 Capital Protection Oriented Fund – Series II 36M May 2014 NFO will be open for subscription from 16th May 2014 to 30th May 2014. The key features of the scheme are as mentioned below:   Type of Scheme A Close Ended Capital Protection Oriented Income Scheme Benchmark Crisil MIP Blended Index Fund Manager Mr. Anil Bamboli , Mr. Vinay R Kulkarni & Mr. Rakesh Vyas New Fund Offer (NFO) Period 16 th May 2014 to 30 th May 2014. Minimum Application Amount Rs. 5000 and in multiples of Rs.10 thereafter Plans/ Options Offered Growth and Dividend Payout Facility Liquidity To be listed For further information contact Prajna Capital on 94 8300 8300 by leaving a missed call

How to PPF Account extension after maturity

A PPF account can be retained after maturity without making any further deposits. The balance will continue to earn interest till it is closed. Public provident fund or PPF remains one of the most popular savings options for the long term despite a gradual decline in interest rates over the years. PPF accounts have a maturity period of 15 years and they can be extended. If there is no fund requirement, financial planners say, PPF account holders should extend the account beyond 15 years. In terms of income tax implications, PPF accounts enjoy the benefit of EEE (exempt-exempt-exempt) status . Under Section 80C, contribution up to Rs 1.5 lakh in a financial year qualifies for income tax deduction. The interest earned and maturity proceeds are also tax free. What are your options when a PPF account matures? 1) A PPF account can be closed after the expiry of 15 financial years from the end of the year in which the account was opened. 2) The subscriber can retain his

SUNDARAM SELECT MIDCAP

Best SIP Funds Online   SUNDARAM SELECT MIDCAP is a mid-cap focused fund has shown remarkable consistency in outperforming both its benchmark index and the category over many years. It takes a sharper tilt towards mid-caps compared to its peers. While the fund manager used to take large positions in his conviction picks, he has moderated exposure to his top bets over the past year. He has also chosen to stay away from capital guzzling businesses instead favouring those with efficient capital allocation practices. SUNDARAM SELECT MIDCAP fund boasts of a superior risk-reward profile compared to many of its peers, and while it has underper formed slightly over the past one year, its proven track record in the hands of a capable fund manager provides comfort. It remains a worthy pick in the midcap basket. SIPs are when Stock Market is high volatile. Invest in Best Mutual Fund SIPs and get good returns over a period of time. Know Top SIP Funds to Invest Save Tax Get Rich For further inform

HDFC Prudence Fund - Invest 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 Prudence Fund Balanced funds are excellent investment options for investors with moderate risk tolerance, since they give very good risk adjusted returns. It is very surprising why balanced funds are not nearly as popular as diversified equity funds, despite being around in India for nearly two decades. Balanced funds are essentially hybrid funds with both debt and equity in its portfolio mix, to balance the portfolio risk. These portfolios typically hold up to 70% of its portfolio assets in equities and the balance in fixed income. On a risk adjusted basis, balanced funds have delivered excellent returns compared to other equity fund categories, e.g. large cap or diversified equity mutual funds. The chart below shows a comparison of category returns between large
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