HDFC Top 200 mutual fund is one that you cannot give a miss. Coming from the stable of HDFC Fund house, its no surprise that this fund has performed consistently over the years. HDFC fund house has some of the best mutual funds to its credit.
If you do not have this in your portfolio, you might want to take a hard look at replacing one that you have with HDC Top 200.
Lets take a peek into the performance of HDFC Top 200 mutual fund and its review.
Objective of HDFC Top 200 mutual fund
Launched in September 1996, the fund is an equity diversified open ended mutual fund with a large cap bias. It is bench marked against BSE 200.
HDFC Top 200 objectives state “The scheme seeks capital appreciation and would invest up to 90 per cent in equity and the remaining in debt instruments. Also, the stocks would be drawn from the companies in the BSE 200 Index as well as 200 largest capitalized companies in India“. The fund manager does retain the ability to invest in companies that are unlisted but which are still in the BSE top 200 by market capitalization.
HDFC Top 200 carries a below average risk profile while its returns are high.
Details of HDFC Top 200
- NAV : 221.454 (Dec 27th 2010)
- Launch Date : September 1996
- Return since launch : around 26%
- Net Assets : Rs 9,069 crore
- Entry Load : Nil
- Exit Load : 1% id redeemed within a year and nil if redeemed after year.
- Minimum Application Amount : Rs 5,000/- for new investors and Rs 1,000/- for existing ones.
- Options : Growth and Dividend / SIP
- Risk : Below Average
- Return : Very High
- Benchmark : BSE 200
Here is what HDFC Top 200 mutual fund would have returned to you had you invested Rs 1,000/- each month in the time periods shown. Note that the annualized returns of HDFC Top 200 are beating the benchmark returns hand down.
|SIP Investments||Since Inception||10 Year||5 Year||3 Year||1 Year|
|Total Amount Invested (Rs.)||170,000||120,000||60,000||36,000||12,000|
|Market Value as on November 30, 2010 (Rs.)||1,651,330.27||715,521.60||109,175.33||58,537.24||13,843.56|
|Benchmark Returns (Annualized)(%)||18.33%||22.23%||15.39%||23.18%||17.22%|
If you happen to look at the annual returns, they are mind boggling as well. Except for 2006, it has beaten its benchmark each and every year.
|S&P CNX Nifty||75.76||-51.79||54.77||39.83||36.34|
The portfolio concentration as of Nov 2010 was 95% equities and 5% debt.
Large Cap makes up around 15% of holdings while the rest 85% is Large cap. The large caps are predominantly index stocks and blue chips like Stats Bank of India, Infosys Technologies and ICICI Bank.
The top 3 holdings make up around 50% of portfolio concentration while the top 10 make up around 43%.
Comparison with other funds
When compared to its peers (comparison on a large cap basis only), say DSPBR Top 100 and Birla Sun Life Frontline Equity, HDFC Top 200 mutual fund seems to have taken a bit of risk to get the returns. Note that if you compare it with other large cap mutual funds, it might turn out to be less risky – I have provided comparison with only two mutual funds.
|Fund Name||Standard Deviation||Sharpe Ratio|
|DSPBR Top 100||28.69||0.19|
|Birla Sun Life Frontline Equity||35.88||0.07|
|HDFC Top 200||32.3||0.37|
As far as the Sharpe ratio is concerned, HDFC Top 200 seems to do the best. Sharpe Ratio is defined as the returns delivered by the fund, per unit of risk borne. In the comparison shown, Birla Sun Life Frontline Equity seems to be doing the worst while HDFC Top 200 is doing the best.
Who is HDFC Top 200 mutual fund for ?
Its best suited for low risk averse investors who want steady yet near guarantee returns. The fund has beaten its benchmark in all the years except in 2006.
With a return of around 26% since launch, it has proved it is dependable and consistent. In the market crash of 2008, HDFC Top 200 mutual fund lost around 45% only, which was less than the category average and BSE 200. In 2009, the fund was back with a bang and established its clout among the best performing funds.
Why buy HDFC Top 200 mutual fund ?
You hardly get a stalwart return of 26% year on year.
Prashant Jain, the fund manager has been at the helm of affairs for straight 8 years, which goes to show what a good fund manager can accomplish for a mutual fund.
HDFC Top 200 comes from a fund house which is known for its process driven approach to investments. Given the consistent good returns over a long period of time, investors should not give this a miss if it suits their risk and return appetite.
Go for HDFC Top 200 mutual fund. It’s a must have in every portfolio.