HDFC Top 200 Fund Renamed to HDFC Top 100 Fund

One of the most popular mutual funds in India, HDFC Top 200 Fund has been renamed to HDFC Top 100 Fund. The fund is managed by one of the most popular fund managers, Prashant Jain. As the name suggests, HDFC Top 100 is a pure large cap fund predominantly investing in the financial services sector. The fund managers believe in investing in companies with a strong balance sheet and business models.

With the name change of HDFC Top 200, the fund strategy will also see a slight change. Earlier, it could invest in the top 200 companies by market cap. Now it will be restricted to investing 80% of its holdings only in the top 100 large cap companies. While this makes the fund more predictable, it reduced the fund manager’s flexibility to experiment with slightly smaller companies. Earlier the fund allocated 10% to mid-cap stocks.

Changes in HDFC Top 200

With the introduction of re-categorization by SEBI, the fund has changed its fundamental attributes. HDFC Top 100 Fund initially invested 76.45% in giant stocks, 13.68% in large-cap stocks and 10% in mid-cap stocks. Mid-cap stocks are no longer a part of the fund’s portfolio. The fund is mandated to invest a minimum of 80% in large-cap stocks. The remaining could be a mix of equity, debt securities, money market instruments, units issued by REITs and InvITs and non-convertible preference shares. The benchmark has changed from BSE 200 to BSE 100.

 

 

Performance

HDFC Top 100 Fund is one of the oldest funds in the Indian market. The fund survived the market ups and downs for 22 years and has given a 19.79% return (annualized) since inception.  The fund is known for its supremely skilled manager Prashant Jain, its robust processes, and best asset management.

HDFC Top 100 Fund has beaten its old benchmark BSE 200 by 3 percentage points in the 3-year returns. The fund has given similar returns as its peers. While the last 5 year returns of HDFC Top 200 have been not great, investors who had invested in this fund earlier continue to swear by it.

Fund1 Year Return (%)3 Year Return (%)5 Year Return (%)
HDFC Top 100 Fund-3.29%15.89%15.81%
Aditya Birla SL Frontline Equity Fund-6.46%11.73%15.24%
SBI BlueChip Fund-7.27%9.85%15.69%
ICICI Pru Bluechip Fund-4.86%13.53%15.18%
Reliance Large Cap Fund-5.3%14.08%17.76%

The fund has given good returns from its inception in 1996. A SIP of Rs 5,000 monthly (Rs 13.45 lakhs) started at inception would’ve given Rs 1.84 Cr by now.

Fund Information

The fund draws its portfolio from the companies in S&P BSE 100 Index. It seeks to invest in higher quality, competitive, sustainable businesses by primarily restricting to the S&P BSE 100 Index scrips. This is intended to reduce risks while maintaining steady growth. The fund concentrates on secular companies than cyclical companies. This helps them reduce risk as well as improves the chance of positive returns in the long term.

The top five holding sectors constitute 86.9% of the portfolio. These include Financial Services (37.53%), Energy (24.30%), Technology (13.42%), Construction (6.99%), and FMCG (4.66%).

Recommendation

While HDFC Top 200 has had a prolific past, other funds in the large-cap category are doing better now. Hence if you have not invested in this, then we recommend you to stay away. If you are looking for a large cap, you may go for ICICI Bluechip or SBI Bluechip funds. If you are a fan of Prashant Jain, then you may keep investing in this fund through SIP.

Fund NameHDFC Top 100 Fund
Original Fund NameHDFC Top 200 Fund
Launch DateOctober 11th, 1996
AUMRs 15,264 Cr
Return (Returns greater than 1 year are annualized)Since Launch: 19.79%
1 Year: -3.26%
3 Year: 15.89%
5 year: 15.81%
Expense Ratio2.26%
Fund Category RiskHigh
Investment PlanGrowth
Minimum Investment Horizon3+ years
Minimum InvestmentRs 5,000
Minimum Additional InvestmentRs 1,000
Exit Load1% if withdrawn within 1 year
Fund ManagerPrashant Jain
Rakesh Vyas

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