HDFC Mutual Fund Large Cap Scheme: HDFC Top 100 Fund, a large cap scheme of HDFC Mutual Fund, is an open ended equity scheme, which has given multibagger returns to investors since its launch. This fund has given rich returns to investors on both lump sum investment and Systematic Investment Plan (SIP). If someone had started a monthly SIP of Rs 4000 with a lump sum investment of Rs 1 lakh at the beginning of this scheme, then his current fund value would have been more than Rs 5 crore. Whereas during this period his own investment would have been less than Rs 15 lakh. We will see the calculation of this multibagger return later, but first let us know the special features of this scheme.
What is special in HDFC Top 100 Fund?
HDFC Top 100 Fund is an open-ended large cap diversified equity scheme, which invests primarily in large cap stocks. The objective of this scheme is to provide long term capital appreciation. This fund invests at least 80% in large cap companies, which are the largest 100 companies in the Indian market.
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Why invest in large cap companies?
Large cap companies are those which are established on a large scale and have been in business for a long time. These companies are able to withstand various ups and downs of the market and remain stable even in different cycles of the economy. Additionally, large cap companies also enjoy economies of scale due to their size, which puts them in a better position than other companies.
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how to make Rs 5 crore fund,
If you do a monthly SIP of Rs 4000 in this fund and continue it for 28 years, then this investment can reach Rs 5 crore at the rate of 19.24% annual return on investment. By combined investment of lump sum and SIP in this fund, you can create a fund of Rs 5.15 crore.
Calculation: This is how a fund of Rs 5.15 crore was created
– Lump sum investment: Rs 1 lakh
– Monthly SIP: Rs 4000
– Investment period: 28 years
– Total investment in 28 years (lump sum + SIP): Rs 14,44,000 (Rs 14.44 lakh)
– Fund value after 28 years: Rs 5,14,54,188 (Rs 5.15 crore)
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Important points about HDFC Top 100 Fund
- Scheme start date: 11 October 1996
- Benchmark: NIFTY 100 Total Return Index
- Annualized Returns (CAGR) since launch: 19.32%
- Risk Level: Very High Risk
- Assets Under Management (AUM): Rs 37,562.33 crore (by October 4, 2024)
- Fund Manager: Rahul Baijal (21 years of experience in fund management and equity research)
Expense Ratio:
– Regular Plan: 1.60%
– Direct Plan: 1.00%
asset allocation and Top Holdings
HDFC Top 100 Fund’s current asset allocation consists of equities at 96.96% and cash and cash-like assets at 3.04%. 100% of the fund’s equity investments are in large caps, which include some of the largest and most prestigious companies in the country. In this also, 84.6% shares belong to companies called Giants, which come in the top 50% of total market cap.
Top 5 Holdings
– ICICI Bank: 9.77%
– HDFC Bank: 8.72%
– NTPC: 6.02%
– Larsen & Toubro: 5.71%
– Bharti Airtel: 5.01%
Fund’s investment strategy
The main objective of the investment strategy of HDFC Top 100 Fund is to generate capital appreciation for the long term. This fund mainly invests in large cap companies, which constitute at least 80% of the portfolio. This fund maintains diversification in different sectors, so that the risk can be reduced and the returns are better.
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Is this scheme right for you?
HDFC Top 100 Fund is the right choice for investors who are looking for long term wealth creation and want to invest primarily in large cap companies. By investing in this fund you will get an opportunity to increase your capital. This fund not only provides stability by investing in large cap companies but also has the possibility of high returns. This fund has the ability to give better returns than inflation over time. If you want good returns with low risk, then this fund can be the right option for you. But if you want to invest for less than 5 years, then this fund is not the right option for you, because short term investment in equity funds carries more risk.
(Disclaimer: The purpose of this article is only to provide information and 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.)
