HDFC Top 100 Fund:An Ideal Investment option in large cap category

Jaipur, December 17, 2018: HDFC Top 100 Fund, as the name suggest, invest in stocks of very large companies or blue-chip stockswith large market capitalisation. Large is solid and large companies exemplify this best. These companies are well-established businesses. Typically, these companies are in operation for a longer period of time and are well positioned to absorb business pressure across various market cycles. Due to their size, they also benefit from economies of scale.

HDFC Top 100 Fund is one of the most established fund in the large cap-category with a strong track record of over 22 years.  Over its journey of over 22 years the Fund has successfully achieved its investment objective of creating wealth over long term. Since Inception the Fund has given a returns of ~ 20% against 13.50% returns given by S&P BSE Sensex on a compounded annual growth rate basis and an investment of Rs. 10,000 at the time of inception of Fund has grown to ~ Rs. 5.58 lakhs against Rs. 1.65 lakhs in S&P BSE Sensex^.

HDFC Top 100 Fund followed a consistent approach of investing and has successfully navigated the bubbles/market excesses since its inception. The Fund has always remained diversified across key sectors of economy managing active position in a controlled manner and thereby reducing risk.

HDFC Top 100 Fund has delivered strong peer group performance and has always been among top performing fund in medium to long term investment horizon. The Fund has consistently managed to declare dividend with 22 dividends in 19 years since 2000 with an average dividend yield of over 10%.A monthly SIP investment of Rs. 10,000 since inception of the Fund aggregating an investment of Rs. 26.60 lakhs would have gown to ~ Rs. 3.56 crores with a return of ~ 20%^.

Given the current market outlook the Fund is overweight on sectors with earning recovery like Corporate Banks & Financials, Utilities, Energy and underweight in high P/E sectors like Consumer Discretionary, consumer Staples etc.

Large-cap funds should ideally form the core holding of any investor’s portfolio.  From an asset allocation perspective, large-cap funds add an element of stability to portfolios. Considering the strong track record, consistent performance, adequate sector & stock diversification and experienced fund manager of HDFC Top 100 fund, the fund is an ideal investment option and should be given a fair share in the investor’s portfolio.

About Manish Mathur