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The second fund in this new series on mutual funds is the HDFC Top 200, one of the oldest diversified equity funds.

Print Edition: October 2009

The second fund in this new series on mutual funds is the HDFC Top 200, one of the oldest diversified equity funds.

FUND FACTS

  • Inception date: September 1996
  • Category: Equity diversified
  • Type: Open ended
  • AUM: Rs 4,755.96 crore
  • Benchmark index: BSE 200

WHAT IT COSTS

  • NAV: Rs 158.42 (Growth) | Rs 40.97 (Dividend)
  • Minimum investment: Rs 5,000
  • Minimum SIP amount: Rs 500
  • Expense ratio: 1.89%
  • Exit load: 1% if withdrawn before a year

HOW HAS THE FUND PERFORMED?

After three mediocre years, HDFC Top 200 is back to its winning ways, with a 75% return since 1 Jan 2009.

Value of Rs 10,000 invested in the fund five years ago

  • Rs 10,000: 10 Sep ’04
  • Rs 25,566: 10 May ’06
  • Rs 42,389: 4 Jan ’08
  • Rs 39,463: 9 Sep ’09

WHERE DOES THE FUND INVEST?

a. Asset mix

95.89%: Equity, 0%: Debt, 4.11%: Cash

b. Investing style

The fund invests mostly in large-cap growth stocks. It has a low risk profile.

c. Sectoral break-up

  • Financial services: 25.03%
  • Energy: 14.02%
  • Tech: 9.42%
  • FMCG: 9.34%
  • Pharma: 8.97%
  • Others: 29.11%

As % of corpus

d. Top holdings

  • ICICI BANK: 6.32
  • STATE BANK OF INDIA: 6.17
  • ONGC: 5.11
  • INFOSYS TECHNOLOGIES: 4.66
  • LARSEN & TOUBRO: 3.63
  • TOP FIVE SCRIPS: 25.89
  • TOP THREE SECTORS: 48.47

Portfolio holdings as on 31 Aug 2009

WHO SHOULD INVEST IN IT?
The past three years have not been too good for HDFC Top 200. In 2006, it was an average performer due to a high exposure to defensive sectors. In 2007, it underperformed the category because it had offloaded energy stocks and had a small exposure to hot sectors such as metals and construction. But in the recent rally (9 March-31 August), the fund gained 101.88%. Low cash levels, being overweight in banking and auto, and underweight in energy and power utilities helped. It’s a good option for investors looking for a diversified, largecap-oriented fund which has the ability to protect the downside.

MEET THE FUND MANAGER
Prashant Jain says the HDFC Top 200 fund keeps away from richly valued investments. “We invest in good quality businesses and look at a company’s growth prospects,” he adds.

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