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
Performance
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 |
| Returns (Annualized)*(%) | 28.58% | 33.54% | 24.19% | 34.23% | 29.76% |
| 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.
| 2009 | 2008 | 2007 | 2006 | 2005 | |
| Fund Returns | 94.46 | -45.35 | 54.46 | 37.44 | 55.25 |
| S&P CNX Nifty | 75.76 | -51.79 | 54.77 | 39.83 | 36.34 |
| Sensex | 81.03 | -52.45 | 47.15 | 46.70 | 42.33 |
Portfolio
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.
Hi Radhey,
Nice info on HDFC Top200.I have not taken SIP yet.So shall I start with HDFC Top200?some are saying that now you will get less units as it has gained much poularity and cost.In addition to it , can you suggest some other good funds to start SIP?
@RaviShankar, I can suggest, but your financial planner is not advising you anymore ?
Good read. I am a big fan of going with the best funds.
Hi,
You said for new investors Minimum Application Amount : Rs 5,000/- So as I m new to this, i will have to invest Rs. 5000 as starting amount and then whatever amount I can. Is it mandatory to inverst Rs. 5000 at the start?
Niraj P
@Niraj Phalke, Yes, you will have to invest Rs 5000 as a lumpsum. You can also start a SIP of Rs.500 for Monthly & Rs.1500 for Quarterly. However, be aware that in respect of each SIP Installment, an Exit Load of 1.00% is payable if Units are redeemed / switched-out within 1 year from the date of allotment.
Hi,
I am a new beginner to get into Mutual funds.Your help will be much appretiated,can you please help me how to begin if I wish to invest around 10000 in this fund.I am suppose to pay some extra money to get into mutual fund,will HDFC have some commision or some charges involved.(Where can i get the complete information about how to get this,please recommend some best mutual funds that can be invested on).
Thank You,
Inayath
tell me how is the time now to invest in hdfc 200 mutaul funds,as the rate per unit now is much mote higher than the earlier it was?
@puneet arora, its a great time, go for it.
suggest me best funds to invest in sip…….. and what is your opinion about realiance growth fund? plz guide….
Hi Radhey,
Should we go for the Dividend or Growth one? I am looking to take this for a 5 year horizon
@Amit, Go for growth if you do not need the money in the form of dividends.
hi radhe i have invested in two sips relience growth fund and kotak 30 which is now kotak 50 for both i have paid 11 ecs can you suggest should i continue with both this plans how they are doing or should i switch hdfc top 200
sushil
sir, i want invest in mutual fund market with sip in hdfc top 200 (g) fund. my plan for 5 year investment scheme. please guide it is good decision from myself because i am salaried govt. employed.
@RAJESH KUKRETI, Yes it is a very good fund. Go ahead.
HI,
This is first time i am using hdfctop200 MF for three years.Is it good for investment or can i extend it from 3 to 5 year and My investment is 1500 per months.Can you suggest me.
@Abhishek, Review every MF each year or each 6 months. Extending every 3 to 5 years is a decision you can take at the beginning if each year.
hi sir,
i am 21 years old student. before 1 month, i have fixed my Rs. 22.4 lakh in IDBI bank FD for 7 years @9.5% p.a.
i have no idea about mutual funds and share markets. but i am always interested very much as it always attracted me.
plz tell me the good option to invest my amount to get handsome return over years with low risk.
also tell me best life & health insurance for my 36 years old aunt. her husband was died in 2007. she is a house wife. she has only one 3 years old girl.
my email id: mrsmtsingh@gmail.com
@sumit singh, What is this money for and when do you need it in the future ? Does your aunt work ? Shes does need health insurance for sure. Where are you based Sumit ?
@Radhey Sharma,
thank u sir…i want to invest my money for more than 5-10 years.
no, my aunt is house wife, she is not working. i am from varanasi.
@sumit singh, Start by putting in some money in good equity MFs and debt MFs.
Ask your aunt to take health insurance on an urgent basis (family floater) of say 2 lakhs immediately.
@Radhey Sharma, sir, plz suggest me 2 best equity and 2 debt MFs for 10 to 15 yrs through SIP of total Rs.15000 p.m.
and i requested u to plz also suggest me best health insurance that u told me for my aunt.
is she not needed any life insurance?
@sumit singh, Sumit, choose the best MFs from the article :
https://www.thewealthwisher.com/2011/01/08/best-mutual-funds-to-invest-in-2011-in-india/
Take Star Health Family Floater. She needs life insurance i guess but i do not know the specifics.
Thanks to all of you for suggestions.
I wish to start a SIP in HDFC TOP 200-Growth fund.
Thsi will be my first step in world of mutual funds.
I just need to confirm mode of starting SIP.
I have a demat account of icici.Can i buy HDFC fund through this.
Is there any transavtion charges?
Please advise best mode of purchase.
@kumar, You can buy. Start investing once a month for a long term.
@Radhey Sharma,
Thanks for the information.
For this they will be charging 1.5% of monthly SIP or Rs 30 whichever is lower every month.
Suppose i am investing directly with HDFC will there be any transaction charges?
Which is the best mode of buy?
@kumar, Will do an article on this in the future as to how much money you might save in each case.
hi Radhey sir,
I am new to MFs and all investment schemes .So, I am not sure whether I should go for FDs or MFs.I can invest 5000 pm in MFs for 3/5 yrs . Please suggest me some MFs with high returns @low risk … :).Also is there any MF which can help in saving income tax.
Ayush
@ayush, Decision to go with FDs or MFs is dependant on many things and cannot be answered so simply.
Choose any MFs from above.
For tax saving MFs read the below:
https://www.thewealthwisher.com/2011/05/06/best-tax-saving-mutual-funds-elss-of-2011-in-india/
Dear Sharma sir,
I want to invest in HDFC top 200 MF ,i am 25 years old and looking for good returs,i want to invest 3000 pm ,how much time period should i go for…1,2 ,3 years and how will it effect my returns….
Thanks and regards,
Rakesh Bhat
@rakesh bhat, go for 1 year, revisit later !
Dear Sir,
Thanks for the same.
Regards.
Hi Sharma,
Just happened to visit this site today when I was searching for some information on mutual funds.This article is very informative and I also read through some of your other articles.You are doing a great job.Please keep it up.
I heard about HDFC TOP 200 fund recently and wanted to invest in this but had some doubts.
1) Given the present market condition, is it safe to invest now or should I wait till the market gets better.
2) How long should I invest in this fund to get good returns(3 yrs, 5 yrs…?)
3) What is the % tax on returns?
Thanks in advance.
Regards,
Kalpana
@Kalpana, Go ahead and invest NOW !! What are you waiting for ?
How long you invest depends on where you want to go with the investments – i.e. what goal are you saving for ?
I want to buy a house after 3 years.I don’t want to go for 100% home loan. So I planned like this. 20,000 per month in RD and 2,000 to 3,000 per month in mutual funds.For tax savings, I have PPF and ICICI pension plan.How does my investment plan looks like?
@Kalpana, Cannot comment just like that. Requires a bit of analysis. Not sure what you are saving in the MFs for ?
will get tax benefit in HDFC top 200?
@Priya, Nope you will not. I will publish the mutual funds which will give you tax benefit but that will come by end of Jan for sure.
hi Sharma,
I’m 25 and want to invest 1000 per month into SIP,I need a mutual fund with tax benefit.. please suggest… u said that HDFC top200 is not a tax savings fund.. Iam planning to invest for 10-15 years…
@Kiran, You may read the below article and pick one: –
https://www.thewealthwisher.com/2012/01/28/best-tax-saving-elss-mutual-funds-in-india-for-2012/
@Kiran, Also note that you can claim tax benefits from these funds in the financial year 2012-13 but next financial year it might change.
So, keep an eye on that and you may want to change your strategy of keep on investing in ELSS funds for 10-15 years.
Hi Sir,
Please suggest me the below ponits
1.)I have invested in icici flexi growth ULIP 30000 p.a for 4 years and now my fund value is 1,20,000.Should I continue or exit and invest in any mutual funs?
if I need to exit suggest me good MF
2.)I am planning to invest in SIP @6000(2000*3) per month below
DSPBR Top 100 Equity
ICICI Focused Bluechip
HDFC Top 200
please suggest me whether above are good?
Thanks,
Raja
Good MFs, go ahead though I do not know whether you need 3 MFs or just 2.
I cannot comment on ICICI ULIP as getting out of it is not a simple decision. Many factors need to be considered.
@Raja,
0% returns from ULIP’s in 4 years, i guess a large chunk went in charges. Agree with @TheWealthWisher that its tough to close it, i did invest in a ULIP long term back but closed it after 4 years since its returns were pathetic.
Good choice on MF, i am invested in HDFC Top 200 & Dsp Top 100 and they have given decent returns.
Thanks Rakesh.
Are there any changes for sip(HDFC Top 200 & Dsp Top 100)?
@Raja,
I did not understand your question by any changes for SIP?
I am still continuing with these funds, renewed it a couple of months back for another year. To scatter your investments on different dates you can opt for SIP of Rs. 1000 too (that’s what i have been doing). Make sure you monitor them periodically.
Sorry Rakesh,I thought of asking any charges for new SIP investments.
EX:If I invest HDEC top 200 SIP thru AXIS bank agent,are there any charges?
or
Do I need to go directly HDFC bank and invest there?
Thanks,
Raja
@Raja,
Generally there are no charges for SIP upto a certain amount, 20k i think, but you should check with Axis bank. These charges vary from broker to broker.
If you go via an agent there could be charges, please check before investing.
It is always better to go directly via fund house. I have my online SIP’s through fundsindia and there are no charges.
Thanks Vivek and Rakesh.
Hello,
I wish to invest in a pension fund, since i belong to the private sector.
Is UTI Retirement Pension fund a good option or can u suggest me some good options ?
this is also deductible under Section 80 C.
As well could you suggest some good taxing saving SIP and the lock in period for the same.
Regards,
Sameer
@Sameer,
Why do you want to invest in pension funds?
Canara Robeco tax saver fund is good and the lock in period is 3 years.
Once DTC comes everything will change.
Best retirement instrument is PPF; low risk, decent tax free returns and deductible under 80C as well.
In addition to that you can invest in Equity tax planning funds like ICICI Prudential Tax Plan and Quantum Tax Saving.
Try to stay away from other insurance-cum-retirement plans. They are expensive and don’t generate adequate returns.
mutual fund managers are equvalent to day time robbery.Plese dont invest in any mutual finds & avoid wasting ones own hard earned money.
@Unni,
What’s your story?
I have been investing in MF for the last 5 years and have earned over 12% returns.
I have invested in HDFC Top 200 recently with a SIP of 1000. I want to invest another 1000 (500 each) in MF. I want a Tax saving MF also. Kindly suggest 1 more good high return MF & 1 good tax saving MF.
Regards,
@Pranjal,
DSPBR Top 100 is a very good fund too. For tax saver you can look at Canara Robecco Tax saver fund.
Hi Sharma,
Which scheme is better- HDFC TOP 200 or SBI Magnum Taxgain?
Regards
Priyanka
What is the motive of investing in either Priya ?
@Priya,
What is your query? Both are different. HDFC Top 200 is in a league of its own whereas SBI taxgain is a tax saver fund.
IS THIS PLAN GOOD FOR 1+ (2 YEAR) INVESTMENT ???
I recommend you read goal based investing concepts to know what you need to invest in for the short term and long term. This is not meant for short term investments.
I am 34 yrs old. I can invest 5ooopm. . I wish to start a SIP in HDFC TOP 200-Growth fund for 20 yrs. is it right for me?
@Rahim,
As your time-horizon is 20 years you can select HDFC Top 200. You can also select DSP Top 100 and split your investments into both of them. Make sure to monitor your investments regularly.
IS HDFC TOP200 PLAN IS GOOD FOR US NOW?CAN I INVEST 1000000 FOR ONE TIME?