The HDFC Growth Fund is an open-ended multi cap fund that aims to generate long term capital appreciation through investments in mid and large cap blue chip equities. It was started in February 2005 and comes from HDFC AMC, among the largest fund houses in the country.
Type of fund
This is an open ended multi cap equity mutual fund.
Investment objective
The objective here is to generate long term capital appreciation through diversified investments across mid and large cap blue chip companies.
Fund information
| Inception date | 01/02/2005 |
| CRISIL rank | Rank 4 in Diversified Equities |
| Schemes |
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| Entry load | 0%. Any upfront commissions to be paid by investor directly to ARN holder. |
| Exit load | 1% if redeemed within 1 year |
| Minimum investment |
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| SIP |
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| Product label – Risk and target investors | Moderately High risk. Meant for long term investors looking at capital appreciation through diversified blue chip based investments. |
| Benchmark | CNX 500. CNX 500 Index represents close to 96% of all the free float market capitalization of stocks listed on the National Stock Exchange (NSE) till 31st March 2015. CNX 500 index constituents have trading value of close to 92% of the overall traded value on NSE. Base date is 01-01-1995 and base value is 1000. |
| SWP | Yes. Available in Fixed and Variable variants. Frequency of withdrawals are monthly, quarterly half yearly and yearly for Fixed SWP and quarterly, half yearly and yearly for Variable SWP. |
| STP | Yes. Available in two variants namely Fixed Systematic Transfer Plan (FSTP) and Capital Appreciation Systematic Transfer Plan (CASTP). Daily, Weekly, Monthly and quarterly transfer plans are available. |
| Redemption | Proceeds to be dispatched within 3-4 days |
| Taxation (on investment and on redemption) | As per applicable sections under the Income Tax Act. |
Fund manager(s)
Mr Vinay R Kulkarni has over 22 years of collective experience of which 20 years have been in the fund management and equity research sector and 2 years in the IT sector. He has a B.Tech from IIT Mumbai and PGDM from IIT Bangalore. He has previously worked with Tata AMC, UTI Mutual Fund, Deutsche Mutual Fund and Patni Computer Systems Ltd. He manages several other funds from HDFC AMC including HDFC Multiple Yield Plan, HDFC Taxsaver, HDFC Dual Advantage Fund, HDFC Premier Multi Cap Fund and HDFC Large Cap Fund, among others.
Mr Rakesh Vyas has over 8 years of experience with 5 years in equity research and 3 years in application engineering. He is an experienced fund manager and manages several funds for HDFC Mutual Funds including HDFC Capital Builder Fund, HDFC Balanced Fund, HDFC Multiple Yield Fund Plan 2005, HDFC Mid Cap Opportunities Fund and HDFC Short Term Opportunities Fund etc. He has a B.E. Electrical degree and a PGDM from XLRI Jamshedpur. He has previously worked with Lehman Brothers and Nomura.
Investment philosophy
The fund invests primarily in an equity portfolio consisting of blue chip companies across mid and large cap holdings. The fund aims to invest about 35-65% in mid cap equities and 35-65% in large cap equities. Blue chip companies are categorized as those having a successful track record and have sufficient competitive advantages among peers and are managed by able people.
Portfolio – Sector / Top 10 holdings*
| Name | Sector | Class | Allocation (%) |
| State Bank of India | Financial | Equity | 7.95 |
| ICICI bank Ltd | Financial | Equity | 5.95 |
| KEC International Ltd | Engineering | Equity | 5.45 |
| Infosys Ltd | Tech | Equity | 4.69 |
| Maruti Suzuki India Ltd | Auto | Equity | 4.29 |
| Bharat Electronics Ltd | Engineering | Equity | 4.19 |
| Punjab National Bank | Financial | Equity | 4.08 |
| Larsen & Toubro Ltd | Diversified | Equity | 3.87 |
| Tata Motors DVR | Auto | Equity | 3.86 |
| Bharat Petroleum Co Ltd | Energy | Equity | 3.63 |
*As on 31st July 2015
Risk measures
| Standard Deviation | 19.48% |
| Sharpe Ratio | 0.61 |
| Alpha | 2.07% |
| Beta | 1.20 |
Performance*
| AUM | Rs.332 crores (Growth) |
| NAV |
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| Expense Ratio |
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*As on 31st July 2015
Benchmark comparison*
| Compounded Annualised Returns | Scheme Returns (%) | Benchmark Returns (%) |
| Returns for last 1 year | 12.26 | 7.26 |
| Returns for last 3 years | 13.52 | 6.54 |
| Returns for last 5 years | 11.59 | 9.71 |
| Returns since inception | 19.46 | 17.00 |
*As on 31st March 2011
Expert view of the fund
HDFC Premier Multi Cap Fund has performed above averagely in its category and with respect to the benchmark. The fund is multi cap in nature and investments are diversified across categories. Large cap stable funds are chosen to mitigate risks. It is a good option for long term investors who are willing to overlook the short term volatility of markets and are looking at creating wealth and satisfying lifestyle needs. You should always consult with your personal financial advisor when investing in mutual funds.
How to apply
Both online and offline avenues exist for investors looking to invest in HDFC Premier Multi Cap Fund.
- Online
Online investors can log into the HDFCMFOnline portal and generate their HPIN numbers once they have satisfied the KYC norms. Once registered, you can select the plan you want to invest in and fill the requisite forms and submit supporting documents. Alternatively, you can use the services offered by third party websites, though it is highly advisable to do a background check of these providers first before investing.
- Offline
Offline investors can go to a branch that accepts HDFC mutual fund applications and apply for the relevant plan by filling up application forms and submitting other documents. Alternatively, you can also use the services of third party providers after carefully checking their credentials.
