HDFC Top 100 Fund Direct Growth

 HDFC Top 100 Fund Direct Growth is one of the top ten large-cap funds for investors to invest in 2024. It was established by HDFC Mutual Fund in January 2013.

The fund is benchmarked against the S&P BSE 100 India TRI and holds a moderate risk and expense ratio among the categories.

HDFC Top 100 Fund has completed 11 years from inception and currently holds an AUM of Rs. 30261.72 crores. The direct-growth plan has yielded 14.99% CAGR per year since its inception.

If you had invested 1 lakh in 2013, your fund would have grown to 4.69 lakhs in 2024.

The minimum lump sum to start investments in this fund is Rs. 100 and the minimum SIP (systematic investment plan) is Rs. 100 per month.

  HDFC Top 100 funds comprise 4 plans,

  • Direct Growth Plan (We speak about this plan in this article)
  • Regular Growth
  • Direct – IDCW (Dividend Plan)
  • Regular – IDCW (Dividend Plan)

Here we are sharing the complete details of this HDFC Top 100 Fund that could make any investor make the right decision before investing.

HDFC Top 100 Fund Direct Growth NAV:

The current NAV for HDFC Top 100 Fund direct growth is 1070.79 (as of February 9, 2024).

The NAV of other plans of the same Funds is

  • Regular Growth – 998.638
  • IDCW – Regular Plan – 61.202
  • IDCW – Direct Plan – 69.606

During the NFO period, all 4 plans had a NAV of Rs. 10. By the above distinction, you could find the Direct-Growth plan helps grow your funds at higher rates than other plans.

Regular plans are best if you need a professional to manage your fund.

Check out the article to know more about HDFC Bank Share Price Review.

HDFC Top 100 Fund Direct Growth Performance:

HDFC Top 100 Fund is an open-ended scheme that invests in large-cap companies (Top 100 companies in the Indian share market per share of market capital).

This fund’s objective was to outperform the benchmark (S&P BSE 100 TRI) with comparatively low risk.

The fund has performed at a CAGR of 14.89% per annum since inception vs. 18.33% to S&P BSE 100 (benchmark). The category average has performed at a CAGR of 15.66%.

HDFC Top 100 Fund Direct Growth
Image from Moneycontrol.com

HDFC Top 100 Fund Direct-Growth has outperformed its category average in 2 and 5 years of performance.

The fund has grown 37.7% higher than the Nifty 50 index since its inception (January 2013).

A short comparison of the fund’s performance with the benchmark and category average follows.

HDFC Top 100 Fund Graph

This fund is a good choice for long-term outperformance if you want to outperform the category average or benchmark over the medium or long term.

The fund has outperformed in 2 and 5 years returns with a CAGR of 23.09% and 19.11%, respectively.

The 2 years performance of the fund is 7.05% higher than the benchmark and 5.76% higher than the category average.

In the last 5 years of performance, the HDFC Top 100 Direct Growth Fund has performed 1.21% higher than the benchmark and 0.71% higher than the category average.

Over the past year, this particular fund has shown lower performance compared to both its benchmark and category.

Once again, the performance calibration proves that this fund should be invested if your goal is mid or long-term to outperform the category average or benchmark.

Fundamental Analysis Ratios:

  • P/B – 3.44
  • P/E – 21.85

HDFC Top 100 Fund Direct Growth Portfolio:

The portfolio of this scheme includes Equity (97.47%) and Cash (2.53%)

Equity Holdings (97.47% of total portfolio):

The fund holds 46 company stocks and is subdivided into three types of classes (as per market capital),

  • Large Cap Companies – 79.52%
  • Mid Cap Companies – 6.32%
  • Small Cap Companies – 0%
  • Others – 11.63%

Cash Holdings (2.53% of total Portfolio):

  • TREPS – 3.02%
  • Not Receivables – (-)0.49%

Fund Portfolio across Industries:

  • Financial – 33.3%
  • Technology – 6.3%
  • Energy – 17.7%
  • Construction – 6.8%
  • Healthcare – 7.8%
  • Consumer Staples – 8.3%
  • Others – 15.7%

Top 20 Holdings:

  1. ICICI Bank Ltd – 9.57%
  2. HDFC Bank Ltd – 7.73%
  3. Reliance Industries Ltd – 7.19%
  4. Infosys Ltd – 5.67%
  5. National Thermal Power Co. Ltd – 5.60%
  6.   Larsen & Toubro Ltd – 5.24%
  7.  ITC Limited – 4.52%
  8. Bharti Airtel Ltd – 4.51%
  9. Axis Bank Ltd – 4.03%
  10. Coal India Ltd – 3.61%
  11. TCS Ltd – 3.25%
  12. Industrial Bank Ltd – 2.96%
  13. Power Finance Co. Ltd – 2.16%
  14. Tata Consumer Products Ltd – 1.68%
  15. Lupin Ltd – 1.64%
  16. Cholamandalam Investment & Finance Co. Ltd.– 1.44%
  17. State Bank Of India – 1.39%
  18. Titan Company Ltd. – 1.24%
  19. Hindustan Aeronautics Ltd. – 1.12%
  20. Ultratech Cement Ltd. – 1.07%

The Top 5 securities of this scheme cover 35.76% of the overall portfolio, and the Top 20 securities cover 75.62%.

HDFC Top 100 Fund Direct Growth Risk Ratios:

Before investing in a mutual fund, it’s essential to analyze its risk ratio.

Standard deviation, Alpha, Beta, and Sharpe ratio are the parameters we usually calculate to predict the volatility and risk on returns.

Here are the details of the 3-year risk factors of the fund vs. category average.

  • Standard Deviation – 14.14 vs. 13.92
  • Alpha – 4.64 vs (-) 0.26
  • Beta – 0.95 vs 0.94
  • Sharpe Ratio – 1.07 vs 0.75

The fund has moderately high risk compared to the category average and benchmark.

HDFC Top 100 Fund Expense Ratio:

The expense ratio plays a important role and impacts the performance of any mutual fund scheme.

The expense ratio or TER of HDFC Top 100 Fund Direct Growth is 1.08%.

The TER of the category average is 1.11%. This is an important reason why the fund has outperformed both the category average and benchmarks in the long term (5+ years).

Here is the expense ratio detail for the same fund with different plans:

  • Regular – Growth – 1.66%
  • Regular – IDCW – 1.66%
  • Direct – IDCW – 1.08%

So, the best plan to choose from this scheme is direct growth. The fund has zero exit loads when redeemed post 1 year and 1% if redeemed within 365 days.

HDFC Top 100 Fund Managers:

Every mutual fund investor must know about the fund manager and their history.

Two managers manage this fund. Rahul Baijal and Dhruv Muchhal.

Rahul Baijal has been managing this fund since July 2022. Before joining HDFC AMC, he worked at Bharti AXA Life Insurance, TVF Capital, HSBC Securities, Credit Suisse Securities, & Standard Chartered Bank.

Apart from this fund, he manages 2 more schemes at HDFC AMC.

Dhruv Muchhal has been managing this fund since July 2023. Before joining HDFC AMC, he worked at Motilal Oswal Financial Services Ltd., Goldman Sachs, CRISIL Global Research & Analytics, and Deloitte Haskins & Sells.

Apart from this fund, he manages 45 more schemes at HDFC AMC.

Most of the funds are managed by these two gentlemen who have a good track record of performance.

Conclusion:

  • HDFC Top 100 Fund is designed for investors with long-term goals like retirement planning, a dream home, a child’s higher education, and marriage.
  • The expense ratio of this fund is lower than the category average.
  • This fund is one of India’s top picks in large-cap mutual funds.
  • Two years and five years of performance are high compared to the benchmark and category average.
  • Maintain a moderately high risk in the category.
  • Portfolios are well diversified within 46 equity securities and a few cash components.
  • The fund manager’s has an excellent track record.