The HDFC Top 100 Fund, a mutual fund with a history spanning 27 years, has demonstrated a robust performance with an annualized return of 19%. As of September 2023, investors who have been consistently investing ₹10,000 per month through a Systematic Investment Plan (SIP) would have accumulated a total of ₹6.88 crore (INR10 crore = approx. USD1.2 million).
The fund's investment strategy is largely focused on large-cap companies, with over 80% of the portfolio committed to such firms. This approach is rooted in HDFC AMC's strategy that aims at investing in high-quality companies at fair valuations. Large-cap stocks, known for their resilience during economic fluctuations, offer superior risk-reward ratios, further solidifying the fund's investment ethos.
The quality of the business model, management, and financial metrics are key factors considered during the stock selection process, which follows a bottom-up approach. This strategy has proven successful over the long term. Over the past 17 years, the large-cap index has outperformed mid and small-cap indices seven times, underscoring the effectiveness of HDFC Top 100 Fund's investment strategy.
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