‘HDFC Top 100 Fund,’ an open-ended equity scheme predominantly investing in large-cap stocks has completed 27 years in 2023. Over the past 27 years, the Fund has delivered a Compound Annual Growth Rate (CAGR) of ~19%. Further, a SIP of Rs 10,000 was invested systematically on the first business day of every month.
This performance is a testament to the fund’s ability to navigate market fluctuations and deliver growth to investors. The portfolio construction follows a bottom-up approach to stock picking blended with top-down sector and macro trends. The Fund follows a diversified style with a blend of GARP and value.
In stock selection, the focus is on the quality of business models, management, and financial metrics. As per the mandate, more than 80% of the portfolio always remains invested in well-established large-cap companies. The core of the portfolio construction is from a medium to long-term perspective.
There is a lot of focus on risk management with active positions being controlled while ensuring compliance with regulatory and internal risk guidelines. Any high-conviction bets are taken after a considered evaluation of the company’s positioning.
Large-cap stocks have historically demonstrated stability during economic fluctuations and have had better risk-reward ratios. Further, the large-cap index has outperformed mid and small-cap indices in 7 out of the last 18 calendar years.
Navneet Munot, MD & CEO – HDFC AMC, said, “Sound Investment + Time + Patience has been the time-tested principle for wealth creation in equities. HDFC Top 100 Fund, which has stood the test of time bears testimony to this.”
Rahul Baijal, Senior Fund Manager – Equities, HDFC AMC, said “HDFC Top 100 Fund’s performance over the past 27 years is a testament to our rigorous research, disciplined investment approach, and a focus on well-established businesses.”
