After recent under performance of HDFC Top 200 fund,there is dilemma among investors whether continue to invest or not.We have tried to take review of risk associated with it and its comparison with peer funds.
HDFC Top 200 :
- HDFC top 200 – large cap oriented fund
- Bench marked against BSE 200.
- Fund inception : Aug, 1996.
- High expectations due to well known associated fund manager.
- Fund have mostly beat the benchmark but it is laggard in comparison with other large cap oriented funds.
Comparison of Technicals of HDFC Top 200 with other Large cap oriented funds:
| Scheme/ Risk Major | 3 yr Alpha | 3 Yr Beta | 3 Yr Std Deviation | 3 Yr risk | 5 Yr risk | 10 Yr Risk |
| HDFC Top 200 | 1.79 | 1.17 | 17.28 | Above Avg | Above Avg | Avg. |
| Franklin India Prima Plus | 9.06 | 0.90 | 13.74 | Avg | Below Avg | Below Avg |
| Mirae Asset India Opportunities Fund | 8.22 | 0.94 | 13.90 | Avg | Avg | – |
| SBI Bluechip fund | 8.16 | 0.86 | 12.82 | Below Avg | Below Avg | – |
| ICICI Prudential Focused Bluechip fund | 4.58 | 0.93 | 13.32 | Avg | Below Avg | – |
One can check risk associated with fund is above avg but till returns are not significant.
- Parameters as per collected from morningstar.
- Fund size is more than 12,000 crore.There is no conclusive study about fund size and its performance.But still, one can not deny risks associated with very high / Very low AUM fund.when fund manager offload a high number of shares then it can affect the share price and NAV of its own fund.
Its true that each fund can face up and downs. HDFC funds have went through under performance around 2007 and have bounced back.Investor should aware that it can happen with any leading fund.
But still after considering parameters, one can switch over to other Large cap oriented multi-cap fund like Franklin India Prima Plus ,Mirae Asset India Opportunities or blue chips – like SBI bluechip fund.
Investor have an option to keep already invested amount in this fund and invest further installments in other suggested funds.
