HDFC Top 200 Fund: 5 reasons why the mutual fund scheme remains a worthy buy

Posted By:
Subscribe to GoodReturns
For Quick Alerts
ALLOW NOTIFICATIONS  
For Daily Alerts

    First the caveat: Markets have run up sharply and the Sensex has rallied almost 50 per cent in the last one year. If you buy a mutual fund scheme like the HDFC Top 200, you would have to invest at a very high net asset value. In any case, if you are a long term investor, here are 5 reasons why we feel you could still get returns in the long term.

    Super returns of 22 per cent since launch

    Since its launch in 1996, the scheme has given returns slightly in excess of 22 per cent. Very few instruments across asset classes can deliver such kind of returns. In most cases it has outshone peers, thanks to some astute handling of its portfolio.

    Blue chips in its bag

    The fund has a solid portfolio comprising stocks like State Bank of India, Infosys, ICICI Bank, Larsen and Toubro, Tata DVR, ITC, Reliance Industries, etc. The mix of economy related stocks and defensives ensures that the portfolio is well balanced.

    Riding the Sensex wave

    The fund has beaten returns of the benchmark indices and has delivered a return of 66 per cent in the last one year. That's phenomenal by any standards.

    Markets may continue to rally

    Should the Indian markets continue to rally, the net asset value could rise considering that the company has high quality stocks, especially from the banking and defensive sectors.

    Invest in small amounts

    The fund offers a chance to invest through the Systematic Investment Plans (SIPs) in small sums as low as Rs 500. This offers investors the chance to look at regular investment through SIPS in small amounts.

    Read more about: mutual funds hdfc top 200
    Story first published: Wednesday, August 27, 2014, 8:20 [IST]
    Company Search
    Enter the first few characters of the company's name or the NSE symbol or BSE code and click 'Go'

    Find IFSC

    Get Latest News alerts from Goodreturns

    We use cookies to ensure that we give you the best experience on our website. This includes cookies from third party social media websites and ad networks. Such third party cookies may track your use on Goodreturns sites for better rendering. Our partners use cookies to ensure we show you advertising that is relevant to you. If you continue without changing your settings, we'll assume that you are happy to receive all cookies on Goodreturns website. However, you can change your cookie settings at any time. Learn more