HDFC Equity Fund : Fund Review

HDFC Equity Fund is an open-ended equity scheme investing across the large cap, mid cap and small cap stocks. It follows an equity strategy to build a portfolio, representing a cross-section of companies diversified across major industries, economic sectors and market capitalization that offer an acceptable risk-reward balance. The fund gave 18.73% return since its launch in Jan 1995. The fund managers are Prashant Jain and Amar Kalkundrikar.

Performance

HDFC Equity Fund is among the top funds in the multi-cap category. The fund has managed to perform better than its benchmark in the long-term. In the short-term, the benchmark’s performance and fund performance was neck to neck.

HDFC Equity Fund has beaten its category average by 1-2 percentage points in the 1, 3 and 5-year returns. It seeks to perform better than its benchmark and peers on a consistent basis. Also, the fund gave 18.73% annualized return since its inception.

Fund1 Year Return (%)3 Year Return (%)5 Year Return (%)
HDFC Equity Fund5.65%17.29%14.88%
SBI Magnum Multi Cap Fund1.60%14.55%18.26%
Kotak Standard Multicap5.57%16.87%18.14%
Mirae Asset India Equity Fund6.99%17.78%17.89%
Aditya Birla Sun Life Equity Fund0.82%16.24%17.75%

A SIP investment of Rs 5,000 a month in HDFC Equity Fund started 5 years ago is worth Rs 3.91 lakhs now. A profit of Rs 91,000 in just 5 years.

Fund Information

HDFC Equity Fund is a multi-cap fund.  The fund predominantly invests in companies spanning entire market capitalization that:

  • are likely to achieve above average growth
  • enjoy distinct competitive advantages,
  • and have superior financial strength.

HDFC Equity Fund has 99.43% investment in Indian stocks of which 83.11% is in large-cap stocks, 10.13% is in mid-cap stocks, 6.07% in small-cap stocks.

Furthermore, HDFC Equity Fund has a well-diversified portfolio with 46 stocks in its portfolio. With Large Cap Investment (83.11%), Mid Cap Investment (10.13%), Small Cap (6.07%) and Other (0.12%). The top five holding sectors constitute 79.80% of the portfolio. These include Financial Services (32.20%), Technology (15.10%), Utilities (12.30%), Industrials (12.20%), and Energy (8.00%).

Recommendation

HDFC Equity Fund invests with a long term view. This fund gives the fund managers flexibility to invest in the companies of their likings irrespective of the size of the company and can, therefore, generate much higher returns. Invest in this fund for an investment horizon of at least 5 years for the investments to give best results. Ideal for long term goals like retirement, kids’ education. Don’t look at returns of these funds in the short-term.

Fund NameHDFC Equity Fund
Launch DateJanuary 1, 1995
AUMRs 20,465 Cr
Return (Returns greater than 1 year are annualized)Since Launch: 18.73%
1 Year: 5.65%
3 Year: 17.29%
5 Year: 14.88%
Expense Ratio2.25%
Fund Category RiskHigh
Investment PlanGrowth
Minimum Investment Horizon5+ years
Minimum InvestmentRs 5,000
Minimum Additional InvestmentRs 1,000
Exit Load1% if withdrawn within 1 year
Fund ManagerPrashant Jain
Amar Kalkundrikar
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