Apart from the equity market, Indian investors are now quite focused on the mutual fund and SIPs for high returns in the short term. As the inflation rate is very high in the country now, investors are looking forward to beating the inflation rate with their income now.
Here, a focused fund has been discussed which has given high short-term and long-term returns.
HDFC Focused 30 Fund - Direct Plan - Growth
This focused equity fund has performed quite well in the long term for SIPs. In the last 1 year SIP return (absolute return) stood at 2.36%, in the last 2 years it has fetched 25.95% returns, in the last 3 years it has given 39.15% returns, and in the last 5 years, it has fetched 43.33% returns. Annualized returns from HDFC Focused 30 Fund's SIP were 23.93% in the past 2 years, and 22.67% in the past 3 years. However, the Indian equity market has not been very bullish in the last year, so, this fund's annualized return has been 4.39% in the past 1 year. Although many funds have fallen sharply in the past one year, this mutual fund has given good returns even in the short term period.
HDFC Focused 30 Fund's absolute mutual fund returns have been better in the last two years. In the last 1 year return stood at 15.86%, in the last 2 years it has fetched 80.42% returns, in the last 3 years it has given 43.65% returns, and in the last 5 years it has given 58.41% returns. In the past 2 years, the HDFC Focused 30 Fund's annualized returns stood at 34.32%, quite higher than the category average at 25.46%. Additionally, in the past 3 years, its annualized return has been quoted at 12.81%, marginally higher than the category average at 12.84%.
(Data till June 29, 2022)
NAV and AUM
It is a focused cap mutual fund SIP investment option that has a NAV of Rs. 121.66. The Assets Under Management (AUM) of this fund is Rs. 1439.84 crore. However, the Expense Ratio (ER) of the fund is 0.99%. However, the ER is marginally higher than the category average is 0.89%, which can affect your profitability. The Expense Ratio (ER) is the cost of owning a mutual fund or SIP, which will be charged by a mutual fund house from the retail investors for managing the fund. Hence, a lower than the category average ER can increase your profitability, and vice versa.
This above-mentioned mutual fund SIP has been best rated with 4 Star by rating agency Crisil.
HDFC Focused 30 Fund's total equity holding is 92.97%, and the rest of the 7.03% is invested in other sectors. Its Indian equity holding is 82.10%, and foreign equity holding is 8.09%. Among a total of 30 stocks, the fund's Large Cap Investments are 61.18%, Mid Cap Investments are 9.17%; Small Cap Investments are 8.94%, and 13.68% investments are allocated to other funds.
The top 10 equity holdings of the fund are ICICI Bank Ltd., HDFC Bank Ltd., State Bank Of India, HCL Technologies Limited - Computers, Infosys Ltd., Dr. Reddys Laboratories Ltd. - Pharmaceuticals, National Thermal Power Corporation Ltd., Bharti Airtel Ltd. - Telecom, Mahindra & Mahindra Ltd., and Hindustan Aeronautics Ltd. - Airlines.
Other funds under this category are, Quant Focused Fund - Direct Plan - Growth, ICICI Prudential Focused Equity Fund - Direct Plan - Growth, IDBI Focused 30 Equity Fund - Direct Plan - Growth, and etc.
Investing in equities/mutual funds/SIPs/debts poses a risk of financial losses. Investors must therefore exercise due caution. Greynium Information Technologies, and the author are not liable for any losses caused as a result of decisions based on the article.