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.
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.
|Fund||1 Year Return (%)||3 Year Return (%)||5 Year Return (%)|
|HDFC Equity Fund||5.65%||17.29%||14.88%|
|SBI Magnum Multi Cap Fund||1.60%||14.55%||18.26%|
|Kotak Standard Multicap||5.57%||16.87%||18.14%|
|Mirae Asset India Equity Fund||6.99%||17.78%||17.89%|
|Aditya Birla Sun Life Equity Fund||0.82%||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.
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.
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, The 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%).
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 Name||HDFC Equity Fund|
|Launch Date||January 1, 1995|
|AUM||Rs 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%
|Fund Category Risk||High|
|Minimum Investment Horizon||5+ years|
|Minimum Investment||Rs 5,000|
|Minimum Additional Investment||Rs 1,000|
|Exit Load||1% if withdrawn within 1 year|
|Fund Manager||Prashant Jain