|
Swapnil Suvarna finds that this fund deserves to be a
core holding in every portfolio for its brilliant and consistent
long term performance
HDFC Equity Fund is among the oldest open end equity
funds and the most impressive in terms of consistency. It was
launched in January 1995 and is benchmarked under S&P CNX 500.
Prashant Jain and Miten Lathia are the joint fund managers. The fund
predominantly focuses on investing in diverse quality growth
companies that are reasonably valued.
The
fund performance has been consistent in generating reasonable alpha
to its investors during the bull phase and has also moderated losses
in the major bear phase. This is largely due to its portfolio which
has been high on liquidity and quality. The fund portfolio is mainly
large cap and emerging mega cap oriented. In addition, it has
favored quality mid caps on a consistent basis which are expected to
maintain growth and profitability in future. However, the investment
in mid caps has been limited to control risk during unforeseen
market conditions.
The
fund has shown decent downside protection and has benefited with the
management’s conviction and focus of maintaining a quality portfolio
thus helping it to outperform the benchmark consistently across
various market cycles.
|
Period |
NAV |
S&P CNX
500 |
|
Since Inception |
22.18 |
|
|
5-years |
19.13 |
11.64 |
|
3-year |
21.56 |
8.01 |
|
1-year |
4.44 |
-1.83 |
|
6-month |
3.1 |
2.04 |
|
Returns as on
August 1, 2011. Returns less than 1 year are absolute, while
greater than 1 year is
annualised. |
|
Source: Accord
Fintech |
| 
