Mutual fund watch: HDFC TOP 200 has outperformed its category in past 5 years

HDFC TOP 200 has outperformed its category in the past five years.

FUND FACTS

INCEPTION: September 1996
CATEGORY: Equity large- and mid-cap
TYPE: Open-ended
AUM: Rs 11,591.05 crore
BENCHMARK INDEX: BSE 200

WHAT IT COSTS

NAV:Rs 210.27 (G), Rs 41.27 (D)
MIN INVESTMENT:Rs 5000
MIN SIP AMOUNT:Rs 500
EXPENSE RATIO:1.78 per cent
EXIT LOAD:1 per cent for redemption within 365 days



WHO SHOULD INVEST IN IT?

The scheme would invest up to 90 per cent in equity and the remaining in debt instruments. Investing in companies from the BSE 200, including IPOs that qualify to be part of the benchmark, has worked for this fund. It has been a consistent long-term performer with over 22 per cent annualised return since its launch in 1996 over both rising and falling markets. It is the biggest equity fund with assets of Rs 11,591 crore (as on 30 September 2012). The sheer asset size of this fund could pose a risk. The fund has a standard deviation of 19.17 and a sharpe ratio of 0.22, meaning low volatility. It is a good option for the core of a portfolio for its steady and reliable returns.

MEET THE FUND MANAGER

Fund manager Prashant Jain's (up until February 2012) conviction in sector calls has driven this fund, be it staying away from technology in 2000 or staying invested in financials in 2008 and later. Fund manager Rakesh Vyas took over from him.

Data and analysis of the fund have been sourced from Value Research