SIP of Rs 10,000 Turns Rs. 6.88 Cr As HDFC Top 100 Fund Celebrates 27 Years

2023 marks the successful completion of 27 years of operation for the open-ended HDFC Top 100 Fund, which primarily invests in large-cap companies. Being one of the oldest mutual fund schemes in India, it was introduced in October 1996.

The fund has produced a Compound Annual Growth Rate (CAGR) of 19% during the previous 27 years. Furthermore, a SIP of Rs 10,000 deposited consistently on the first business day of each month, making a total investment of Rs 32.40 Lacs in the HDFC Top 100 Fund, would have bumped to Rs 6.88 crores by September 29, 2023. The fund's capacity to manage market swings and provide investors with consistent growth is demonstrated by its performance.

96.82% of the investments in the HDFC Top 100 Fund are in domestic equities, of which 76.93% are in large-cap stocks and 6.25% are in mid-cap stocks. The expense ratio for the fund is 1.68% as opposed to the category average of 2.07%, and the AUM of the fund is Rs 26391.0 Cr.

The growth returns for the HDFC Top 100 Fund Direct Plan over the past year are 14.35%. It has produced 13.59% average yearly returns since its debut. ICICI Bank Ltd., HDFC Bank Ltd., Reliance Industries Ltd., ITC Ltd., and National Thermal Power Corp. Ltd. are the top 5 holdings of the fund. The bulk of the fund's investment is allocated to the financial, energy, technology, consumer staples, and healthcare industries.

Rahul Baijal, Senior Fund Manager - Equities, HDFC Mutual Fund, said "HDFC Top 100 Fund's consistent performance over the past 27 years is a testament to our rigorous research, disciplined investment approach, and a focus on well-established businesses. Large-cap stocks offer stability and better risk adjusted return, making them an attractive option for investors looking for investment opportunities over the long term."

Large-cap stocks offer stronger risk-reward ratios and have traditionally shown steadiness throughout economic ups and downs. Furthermore, in 7 of the last 17 calendar years, the large cap index has outperformed the mid and small-cap indices.

"The portfolio construction follows a bottom up approach to stock picking blended with top down sector and macro trends. The Fund follows a diversified style with a blend of GARP (growth at reasonable price) and value. In stock selection, the focus is on quality of business models, management and financial metrics. Portfolio construction is based on risk-reward of opportunities available at any given point in time. As per the mandate, more than 80% of the portfolio always remains invested in the well-established large cap companies. The core of the portfolio construction is from a medium to long term perspective. The strategy will be in line with our philosophy of maintaining a disciplined approach of looking for quality companies at reasonable valuations," said HDFC Asset Management Company Limited (HDFC AMC) in a statement.

HDFC Asset Management Company Limited (HDFC AMC) is an Investment Manager to HDFC Mutual Fund, one of the largest mutual funds in the country.