HDFC Top 100 Fund Celebrates 27th Anniversary With 19% CAGR

HDFC Top 100 Fund marks 27 years of success with a 19 per cent CAGR. A SIP of Rs 10,000 started at launch would have grown to Rs 6.88 crore

HDFC Top 100 Fund, a large cap equity mutual fund scheme, celebrates 27 years today, November 3, 2023. For those investing in the fund via a systematic investment plan (SIP), Rs 10,000, if invested each month since launch, would have turned into Rs. 6.88 crores by September 29, 2023. During this period, the Compound Annual Growth Rate of the fund was 19 per cent, the fund house said.

The fund house notes that if an investor had started a similar SIP of Rs 10,000 ten years ago, the total investment would be Rs 12 lakh, which would now have grown to Rs 24.73 lakh.

Rahul Baijal, Senior Fund Manager - Equities at HDFC Mutual Fund, states, "HDFC Top 100 Fund's performance is a result of rigorous research, disciplined investment practices, and a focus on well-established businesses."

The portfolio construction combines a bottom-up stock selection approach with a top-down sector and macro trend analysis. More than 80% of the portfolio remains invested in established large-cap companies, emphasizing a medium to long-term perspective, the fund house said. The strategy aligns with a disciplined approach, seeking quality companies at reasonable valuations. The portfolio is well-diversified, and the fund manager makes measured sector deviation calls compared to the benchmark.

Large-cap stocks have historically shown stability during economic fluctuations and offered better risk-reward ratios. The large-cap index outperformed mid and small-cap indices in 7 out of the last 17 calendar years, the release said. Given the recent strong performance of mid- and small-caps over large caps, the large-cap segment now appears relatively attractive in valuations, it added.

The Fund Performance

According to the Association of Mutual Funds in India (AMFI) figures, over the past year, it outperformed the Nifty 100 (its benchmark) with a 14.35 per cent return compared to the benchmark's 5.29 per cent. In three years, it achieved a 25.56 per cent return, surpassing the benchmark's 18.83 per cent. Over five years, the fund secured 13.97 per cent return, and in 10 years, it delivered 14.79 per cent returns. Since its inception, it has provided a return of 13.59 per cent.

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