Personal Finance Blog India –

HDFC Top 200 SIP Continue Or Not:

After recent under performance of HDFC Top 200 fund,there is dilemma among investors whether continue to invest or not.We have tried to take review of risk associated with it and its comparison with peer funds.

HDFC Top 200 :

  • HDFC top 200 – large cap oriented fund
  • Bench marked against BSE 200.
  • Fund inception : Aug, 1996.
  • High expectations due to well known associated fund manager.
  • Fund have mostly beat the benchmark but it is laggard in comparison with other large cap oriented funds.

Comparison of Technicals of HDFC Top 200 with other Large cap oriented funds:

Scheme/ Risk Major 3 yr Alpha 3 Yr Beta 3 Yr Std Deviation 3 Yr risk 5 Yr risk 10 Yr Risk
HDFC Top 200 1.79 1.17 17.28 Above Avg Above Avg Avg.
Franklin India Prima Plus 9.06 0.90 13.74 Avg Below Avg Below Avg
Mirae Asset India Opportunities Fund 8.22 0.94 13.90 Avg Avg
SBI Bluechip fund 8.16 0.86 12.82 Below Avg Below Avg
ICICI Prudential Focused Bluechip fund 4.58 0.93 13.32 Avg Below Avg

One can check risk associated with fund is above avg but till returns are not significant. 

  • Parameters as per collected from morningstar.
  • Fund size is more than 12,000 crore.There is no conclusive study about fund size and its performance.But still, one can not deny risks associated with very high / Very low AUM fund.when fund manager offload a high number of shares then it can affect the share price and NAV of its own fund.

Its true that each fund can face up and downs. HDFC funds have went through under performance around 2007 and have bounced back.Investor should aware that it can happen with any leading fund.

But still after considering parameters, one can switch over to other Large cap oriented multi-cap fund like Franklin India Prima Plus ,Mirae Asset India Opportunities or blue chips –  like SBI bluechip fund.

Investor have an option to keep already invested amount in this fund and invest further installments in other suggested funds.


ELSS – Mirae Asset Tax Saver Scheme:

Mirae Asset Tax Saver Fund is open for subscription now.One can invest in ELSS scheme of mutual fund and avail tax benefit u/s 80C up to investment of Rs.1,50,000/-.

Mirae Asset Tax Saver Fund

Few  comparable 80C investment options available for investors:

Instrument Returns Lock In Period Taxation
ELSS Market Linked 03 Yrs Tax Free Dividends / Withdrawal 
PPF 8.70% 15 Yrs Tax Free Interest
NSC – 05 Yrs 8.50% 05 Yrs Interest Taxable
NSC – 10 Yrs 8.80% 10 Yrs Interest Taxable
Bank Deposits 7-8% 05 Yrs Interest Taxable
Unit Linked Insurance Plan – ULIP Market linked 05 Yrs Returns Tax Free if life cover is minimum 10 times of premium



Why ELSS Scheme:

  1. ELSS being diversified Equity oriented Fund invests min 80% of corpus in equity.It has potential to provide higher returns if units are held for longer period.
  2. ELSS has lowest lock in period of 03 yrs.One can continue or withdraw after completion of 03 yrs.
  3. If dividends are opted then dividend is tax free in hands of investors.Dividends are not guaranteed but generally any profit making ELSS scheme declares dividends at least once in year.


Performance of other Mirae Asset Equity Schemes Viz. Mirae Asset India Opportunities fund & Mirae Asset emerging Bluechip is good.Same can be expected from this ELSS scheme – Mirae Asset Tax Saver Fund.

Fund is open for initial subscription from Nov 20 to Dec 18, 2015.It will reopen for continuous subscription from Dec 29, 2015.


Axis children’s Gift fund Vs. HDFC Children’s Gift Fund Vs. ICICI Prudential Mutual fund Child Plan:

New fund offer – NFO – of Axis children’s Gift Fund is currently on and it seems that fund house is aggressively marketing this product.

But such kind of Child plans are not new for mutual fund industry.There are few other fund houses already having this kind of product with a little difference.

HDFC Children’s Gift Fund – Investment plan and ICICI Prudential Child Plan – Gift Plan  goes nearer to New fund – Axis children’s Gift Fund.

Comparison of HDFC and ICICI Pru Children’s Plan:

Scheme   HDFC children’s Gift Fund –Investment Plan   ICICI Pru Child Care Plan – Axis Children’s Gift fund
Fund Type   Hybrid – Equity Oriented   Hybrid – Equity Oriented Hybrid – Equity Oriented
Inception Date Mar 02, 2001 Aug 06, 2001 Nov 18, 2015
Latest NAV as on Nov 20, 2015   82.40   101.77
Current Equity Exposure 70.42% 81.59%
Number of Stocks   50   31
Performance Returns
Last 01 Yr 2.5% -0.8%
Last 02 Yrs 24.1% 27.7%
Last 03 Yrs 20% 18%
Last 05 Yrs 14.1% 10.4%
Last 10 Yrs 14.55% 13.17%
Top 05 Sector holding   Banking/Financials,










Top 05 Stock Holding Infosys,


Reliance Industries,

HDFC Bank, Britannia Industries

HDFC Bank, Tech Mahindra,

Kotak Bank,

V-Guard Industries,

Shree Cements.


  1. ICICI Prudential child Plan is high beta fund with higher turnover ratio.
  2. Net equity exposure of Axis Children’s Gift fund is up to 60% .so it may be less volatile but can offer conservative returns over a period of time.
  3. Its NOT mandatory for ICICI Pru child Care fund to invest in child’s name.

One can conclude that investor can also invests in ongoing balanced funds.Goals related to child’s education,marriage can achieved through established old funds also.



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