HDFC Mutual Fund Scheme Robust Performance:The more than 30 year old scheme of HDFC Mutual Fund, one of the biggest fund houses of the country, has proved the saying ‘old is gold’ to be true. The name of this scheme which converts an investment of just Rs 2000 every month into a fund of more than Rs 2 crore is HDFC Capital Builder Value Fund. This scheme has increased the investors’ capital by 76 times in 30 years by giving excellent returns on investments made through Systematic Investment Plan (SIP) as well as lump sum investment.
Investment Strategy of HDFC Capital Builder Value Fund
HDFC Capital Builder Value Fund is an open-ended equity scheme that invests based on a value investment strategy. Launched on 1 February 1994, the objective of this scheme is to achieve capital appreciation in the long term. This scheme mainly invests in undervalued stocks, which are trading below their fair value. 60% of the scheme is invested in companies that have below the average P/E (price-to-earnings ratio) or P/B (price-to-book ratio) of its benchmark (NIFTY 500 Total Returns Index). Are doing trade. Under the strategy of sectoral diversification, this scheme invests in different sectors, so that the risk can be reduced. This scheme works as a multi-cap fund, in which investments are made in stocks of companies with different capitalization in terms of market cap segments.
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This is how a fund worth crores was created from Rs 2000 SIP.
You can see the calculation of how this scheme has converted a monthly SIP of Rs 2000 into a corpus of Rs 2.12 crore:
- Scheme Name: HDFC Capital Builder Value Fund (Regula Plan)
- Monthly SIP: Rs 2000
- Investment period: 30 years
- Total investment through SIP in 30 years: Rs 7.20 lakh
- Annualized Return on SIP: 18.11%
- Fund value after 30 years of SIP investment: Rs 2,12,62,645 (Rs 2.12 crore)
(Source: Value Research SIP Calculator)
76 times return on one-time investment
This scheme has given excellent returns even on lump sum investment. If Rs 1 lakh had been invested 30 years ago, it would have become Rs 76.41 lakh today. That means this scheme has increased the wealth of investors 76 times in 30 years. You can see here what the average annual return (CAGR) of the scheme has been in different periods.
Also read: This scheme of HDFC MF showed the speed of returns, Rs 1 lakh became Rs 1.95 crore, the money grew 3 times in 5 years and more than 4 times in 10 years.
Previous HDFC Capital Builder Value FundDisplay
– 1 year (CAGR): 48.00%
– 3 years (CAGR): 21.12%
– 5 years (CAGR): 22.55%
– 10 years (CAGR): 15.53%
– Since launch (CAGR): 15.18%
Also read: Top 6 equity funds of ICICI Prudential, returns ranging from 53% to 67% in 1 year, best scheme doubled money in 2 years
HDFC Capital Builder Value FundSectoral Diversification
The portfolio of HDFC Capital Builder Value Fund is spread across various sectors, thereby reducing the risk. The major sectors are:
– Financial Services: 30.5%
– Information Technology: 9.0%
– Healthcare: 8.6%
– FMCG: 7.8%
– Automobiles and Auto Components: 6.6%
of the fundTop 10 Equity Holdings
According to the October 2024 fact sheet of the fund house, in September 2024, the share of large cap in the equity investment of this fund was 66.8%, mid cap was 13.7% and small cap stocks was 19.0%. The top 10 holdings of the scheme and their investment share are as follows:
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ICICI Bank: 6.62%
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HDFC Bank: 6.37%
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Bharti Airtel: 5.13%
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Infosys: 4.52%
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Axis Bank: 3.99%
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NTPC: 3.49%
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State Bank of India: 3.30%
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Sun Pharmaceutical Industries: 2.69%
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Larsen and Toubro : 2.56%
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HCL Technologies: 2.28%
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Important things related to the scheme
– Scheme Type: Value Fund
– AUM: Rs 7,883.25 crore (30 September 2024)
– Benchmark: NIFTY 500 Total Return Index
– Minimum SIP: Rs 100
– Expense Ratio (Regular Plan): 1.83%
– Expense Ratio (Direct Plan): 0.97%
– Riskometer: Very High Risk
– Fund Manager (from 1 February 2024): Anand Laddha, 18 years of experience
exit load
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1.00% on exit or switch within 1 year of allotment of units
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No exit load on exit or switching of units after 1 year of allotment.
For which investors is this scheme suitable?
HDFC Capital Builder Value Fund is suitable for investors who want to grow their wealth through long-term value investing and have the risk appetite to invest in equities. This scheme has gained the trust of investors by giving excellent returns on investment during the last 30 years. But the past performance of an equity fund cannot be considered as a guarantee of giving similar returns in future. Before deciding to invest, investors should consult their financial advisor whether this product is right for them or not.
(Disclaimer: The purpose of this article is only to provide information, not to advise investment in any fund. Investments made in equity mutual funds are directly affected by the ups and downs of the stock market. Any investment decision should be taken by your investment advisor. Do it only after taking advice from.)