Performance and Analysis Report on HDFC Top 200 Mutual Fund

Performance and Analysis Report on HDFC Top 200 Mutual Fund as on 31st May 2013

Objective of HDFC Top 200 Mutual Fund: The objective of the Fund is to generate long term capital appreciation from a portfolio of equity and equity-linked instruments primarily drawn from the companies in BSE 200 index.

Investment Strategy of HDFC Top 200 Equity Funds:  The Scheme will construct a portfolio that will invest in BSE 200 index stocks. As the number of stock will be from the pool of well researched companies having good performance report will lead to risk will also be reduced through a diversification of the portfolio.

Investment Approach for HDFC Equity Investment Portfolio

  • Focus on the long term growth in the equity investment
  • Investments confer proportionate ownership to have a comprehensive understanding of how the business operates. The key issues to focus on are growth opportunities, sustainable competitive advantage, industry structure and margins and quality of the management.
  • Maintain a margin of safety: The benchmark for determining relative attractiveness of stocks would be the intrinsic value of the business. The Investment Manager would endeavor to purchase stocks that represent a discount to this value, in an effort to preserve capital and generate superior growth.
  • Maintain a balanced outlook on the market: The investment portfolio would be regularly monitored to understand the impact of changes in business and economic trend as well as investor sentiment. While short-term market volatility would affect valuations of the portfolio, this is not expected to influence the decision to own fundamentally strong companies.
  • Disciplined approach to selling: The decision to sell a holding would be based on either the anticipated price appreciation being achieved or being no longer possible due to a change in fundamental factors affecting the company or the market in which it competes, or due to the availability of an alternative that, in the view of the Investment Manager, offers superior returns

Investment Allocation of HDFC Top 200 Mutual Fund

InstrumentsIndicative Allocation (% of total assets)Risk Profile
Equity & Equity Related Instruments of the constituents of BSE 200 Index0 – 100% (including use of derivatives for hedging and other uses as permitted by prevailing SEBI Regulations)High
Debt* & Money Market InstrumentsBalance in Debt & Money Market InstrumentsLow to Medium

 Investment Analysis:  HDFC Top 200 Mutual Fund has given one year return of 19.46% as compare to BSE 200 Index , which has given 20.65% And Fund is charging NIL entry load and exit load of 1% if redeemed with in 1 year and Nil exit load if redeemed after 1year.

Scheme Name Date of InceptionCorpus in Crs3 Months6 Month Return1 Year return
HDFC Top 200 Fund 11-Oct- 199611697.96.65%4.70%19.46%
Benchmark –BSE 200 Indices1.47%5.45%20.65%

 Mutual Fund NAV: Rs 221.41/- as on 31st May 2013

Load Structure

  • Entry Load: NIL
  • Exit Load (Under Normal Circumstances):
  • Upto 1 Year  -1%

Minimum Investment: For new investors: Rs.5000 and any amount thereafter and For existing investors: Rs. 1000 and any amount thereafter.

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