Mutual funds: How Rs 10,000 a month in SIP turned to Rs 8.30 crore
HDFC Top 100 Fund is the longest-running open-ended MF scheme in the country
- Jun 25, 2024,
- Updated Jun 25, 2024 1:18 PM IST
HDFC Top 100 Fund, one of the longest-running mutual fund open-ended schemes in the country, has delivered a compound annual growth rate (CAGR) of around 19% since its inception in October 1996. Further, an SIP of Rs 10,000 invested systematically on the first business day of every month (total investment of Rs 33.20 lakh) in HDFC Top 100 Fund would have grown to Rs 8.30 crore by May 31, 2024.
According to HDFC MF, the portfolio construction follows a bottom-up approach to stock picking blended with top-down sector and macro trends. The fund follows a diversified style with a blend of GARP (growth at a reasonable price) and value.
As per the mandate, more than 80% of the portfolio always remains invested in well-established large-cap companies. The core of the portfolio construction is from a medium to long-term perspective.
The asset manager in a release said that there is a lot of focus on risk management with active positions being taken in a controlled manner while ensuring compliance with regulatory and internal risk guidelines. Any high-conviction bets are taken after a considered evaluation of the company’s positioning in the industry and the business cycle and are regularly evaluated. The portfolio is well diversified in number of stocks and the fund manager takes measured sector deviations calls vs benchmark.
Large-cap stocks have historically demonstrated stability during economic fluctuations and have had better risk-reward ratios. Further, the large cap index has outperformed mid and small cap indices in 7 out of the last 18 calendar years since 1996. “Given the recent sharp outperformance of mid and small caps over large caps, the large cap segment now seems to be relatively attractive in terms of valuations,” HDFC MF said.
Navneet Munot, MD and CEO - HDFC AMC, said, “Sound investment + Time + Patience has been the time-tested principle for wealth creation in equities. HDFC Top 100 Fund, which has stood the test of time bears testimony to this. The wealth creation journey of HDFC Top 100 Fund over 27 years is also a shining example of our robust research and investment processes which has helped the fund withstand multiple market cycles over the years.”
Rahul Baijal, Senior Fund Manager-Equities, HDFC AMC, said “HDFC Top 100 Fund’s performance over the past 27 years is a testament to our rigorous research, disciplined investment approach, and a focus on well-established businesses. Large-cap stocks offer stability and better risk-adjusted return, making them an attractive option for investors looking for investment opportunities over the long term."
HDFC Top 100 Fund, one of the longest-running mutual fund open-ended schemes in the country, has delivered a compound annual growth rate (CAGR) of around 19% since its inception in October 1996. Further, an SIP of Rs 10,000 invested systematically on the first business day of every month (total investment of Rs 33.20 lakh) in HDFC Top 100 Fund would have grown to Rs 8.30 crore by May 31, 2024.
According to HDFC MF, the portfolio construction follows a bottom-up approach to stock picking blended with top-down sector and macro trends. The fund follows a diversified style with a blend of GARP (growth at a reasonable price) and value.
As per the mandate, more than 80% of the portfolio always remains invested in well-established large-cap companies. The core of the portfolio construction is from a medium to long-term perspective.
The asset manager in a release said that there is a lot of focus on risk management with active positions being taken in a controlled manner while ensuring compliance with regulatory and internal risk guidelines. Any high-conviction bets are taken after a considered evaluation of the company’s positioning in the industry and the business cycle and are regularly evaluated. The portfolio is well diversified in number of stocks and the fund manager takes measured sector deviations calls vs benchmark.
Large-cap stocks have historically demonstrated stability during economic fluctuations and have had better risk-reward ratios. Further, the large cap index has outperformed mid and small cap indices in 7 out of the last 18 calendar years since 1996. “Given the recent sharp outperformance of mid and small caps over large caps, the large cap segment now seems to be relatively attractive in terms of valuations,” HDFC MF said.
Navneet Munot, MD and CEO - HDFC AMC, said, “Sound investment + Time + Patience has been the time-tested principle for wealth creation in equities. HDFC Top 100 Fund, which has stood the test of time bears testimony to this. The wealth creation journey of HDFC Top 100 Fund over 27 years is also a shining example of our robust research and investment processes which has helped the fund withstand multiple market cycles over the years.”
Rahul Baijal, Senior Fund Manager-Equities, HDFC AMC, said “HDFC Top 100 Fund’s performance over the past 27 years is a testament to our rigorous research, disciplined investment approach, and a focus on well-established businesses. Large-cap stocks offer stability and better risk-adjusted return, making them an attractive option for investors looking for investment opportunities over the long term."