HDFC Top 200 Fund - Reliable Wealth Creator!

Swapnil Suvarna recommends this fund as a long-term investment to your investors who are looking to gain maximum returns with minimum risk

India’s largest equity fund HDFC Top 200 Fund is also the most impressive fund in terms of performance consistency. It was launched in October 1996 and is benchmarked under BSE 200. Prashant Jain and Miten Lathia are the joint fund managers. The fund predominantly focuses on investing in quality growth companies that are reasonably valued from among the 200 largest companies by market capitalization. Moreover, the fund also invests selectively in those scrips that are not a part of BSE 200 index but would qualify otherwise in terms of market capitalization to be in BSE 200 index. 

Since inception, the fund has been consistent in generating superior alpha to its investors during bull phases and has moderated losses during market downturns by holding a portfolio that is high both on liquidity and quality. Over the years, the popularity of this fund has increased mainly due to its consistent impressive performance against the major indices.

The fund portfolio is mainly large cap and emerging mega cap oriented. In addition, it has favored mid caps with high growth and profitability potential. However, in order to control risk, the investment in mid caps has been limited.

Overall the fund has shown excellent downside protection and has benefited with the fund management’s conviction and focus of maintaining a quality portfolio. The fund scores mainly on the steady and disciplined approach of the fund manager to consistently generate extraordinary returns without chasing momentum.