HDFC Mutual Funds was established on December 10, 1999. It was launched as a partnership between Housing Development Finance Corporation Limited and Standard Life Investments Limited. HDFC AMC’s market share is also impressive at 11.25%.
HDFC AMC offers a diverse portfolio of investment schemes. There are 85 primary schemes, including 47 equity funds, 24 debt funds, and 11 hybrid funds.
Well, this is a brief introduction to the company. Now, let’s examine some of its key schemes to understand how this AMC has performed in the last ten years.
Understanding HDFC Mutual Fund Returns
Let’s understand the performance of this AMC in the last decade.
- HDFC Top 100 Fund
HDFC Top 100 focuses on domestic equities, with 96.35% invested in the Indian market. Of this percentage, 79.92% is allocated to large-cap stocks. As of April 30, 2024, the Top 100 AUM stood at ₹33,170.08 crores.
With an absolute return of 305.62% and an annualised return of 15.01% in the last ten years, this scheme is preferred by many.
The key holdings of this scheme are:
●NTPC Ltd.
●HDFC Bank Ltd.
●Infosys Ltd
●ICICI Bank Ltd.
●ITC Ltd.
- HDFC Focused 30 Fund
This open-ended equity scheme comprises 30 meticulously picked stocks. As of April 2024, the scheme has a substantial fund size of ₹10,432.98 Cr. Regarding returns, the fund has delivered a 10-year return of 346.58%. That means an annualised return of 16.12%.
However, it is important to note that the fund carries a ‘Very High’ risk rating. If the market is unfavourable, you may incur moderate to high losses. The key holdings of this scheme are:
●CIPLA
●HDFC Bank Ltd.
●SBI
●Hindustan Aero
●Apollo Hospitals
- HDFC Credit Risk Debt Fund
HDFC Credit Risk Debt scheme invests primarily in AA and below-rated corporate debt. It is known for investing in bonds with higher risk and potentially higher returns than the highest-rated bonds.
Since its inception on March 06, 2014, the scheme has generated an annual return of 8.74%. As of April 2024, its AUM stood at ₹8,122.09 crores.
- HDFC Capital Builder Value Fund
This fund follows a value/contrarian investment strategy. It aims to identify stocks trading at prices lower than their intrinsic value. The fund invests 98.91% in domestic equities. Of this percentage, 62.41% is in large-cap stocks, 8.18% in mid-cap stocks, and 12.55% in small-cap stocks.
The fund’s size is ₹6,702.27 crores. Over the last ten years, it has delivered an absolute return of 347.22%, which means investors have gained 16.14% annually.
- HDFC Infrastructure Fund
Launched by HDFC Mutual Fund AMC on March 10, 2008, this sectoral investment option focuses on the infrastructure sector. As of March 2024, the fund has AUM worth ₹1,663.37 crores. When you look at the 10-year horizon, the fund has provided an absolute return of 298.54%, translating to an annualised return of 14.81%.
The HDFC Infrastructure Fund operates at a very high-risk level per the Risk-O-Meter. This scheme is suitable for investors with an advanced understanding of macro trends who are willing to take selective bets for potentially higher returns.
Conclusion
The performance of HDFC Mutual Funds as an AMC over the last ten years has been impressive. Its commitment to delivering consistent returns, coupled with its focus on customer satisfaction, makes it a preferred choice for investors looking to grow their wealth. To invest in mutual funds, consider Dhan.
