HDFC Mutual Fund is one of the most trusted names in the mutual fund industry.

The fund house offers a variety of retail investment solutions across different investment instruments such as equity, debt etc. The trust in the house has been a result of delivering constant performance throughout many years.

Therefore, in this article we will highlight the top 5 funds which we can choose under HDFC Mutual Fund to start an SIP.

Don’t forget, now that we have mentioned SIP, the time frame we should be looking at should be at least of 5 to 7 years.

Now that investors have become fully of why we chose this fund house. Let us begin without any adieu.

5 Best HDFC SIP Plans - At a Glance
Fund Name 1Y 3Y 5Y Expense Ratio Turnover Ratio Category Risk
HDFC Small Cap Fund - Direct - Growth -3.99% 20.15% 20.99% 0.87% 37% Equity
(Small Cap)
Moderately High
HDFC Top 100 Fund - Direct - Growth 13.77% 17.45% 14.8% 1.5% 34% Equity
(Large Cap)
Moderately High
HDFC Balanced Advantage Fund - Direct - Growth 9.2% 16.67% 15.16% 1.28% 30% Hybrid
(Balanced Advantage)
Moderately High
HDFC Mid-Cap Opportunities Fund - Direct - Growth -4.69% 15.27% 20% 1.22% 58% Equity
(Mid Cap)
Moderately High
HDFC Hybrid Equity Fund - Direct - Growth 2.1% 12.24% 12.05% 1.28% 24% Hybrid
(Aggressive)
Moderately High

5 Best HDFC SIP Plans – Details

Now, let’s look at the 5 funds in detail:

1.HDFC Small Cap Fund – Direct – Growth

A severe dip in the returns for this fund can be noticed in case of one year.

However, a closer look at the portfolio of these schemes suggests a different picture. The businesses in the portfolio are good in terms of fundamentals (such as KEC International, SKF India Ltd., NRB Bearings Ltd., Balkrishna Industries, Sharda Cropchem Ltd., and NIIT Technologies Ltd.).

Therefore, investors can think of investing in these schemes for long term. Given the correction the fund has seen, now is the right time as the number of units available for the same would be more.

Key Information

Launch Date 01 – Jan – 2013
AUM (Size) 6,013 crores
Minimum SIP 500
Minimum for First Investment 5000
Performance w.r.t its benchmark Has beaten the benchmark NIFTY Smallcap 100 TRI over consistent periods of time
Age of the fund 6 years
Expense Ratio 0.71%
Turnover 18%
Exit Load If the fund is redeemed between 0 to 12 months, exit load is 1%
Type Small Cap
Fund Manager Chirag Setalvad

Investment Objective

The investment objective of the fund is to generate long term capital appreciation for investors by investing in three major instruments namely:

  • Equity and equity related instruments;
  • Money market instruments;
  • Equity Derivatives

Also Read: HDFC Small Cap Fund (Direct) Review: Is This the Best Small Cap Fund Right Now?

Holding Analysis

2.HDFC Top 100 Fund – Direct – Growth

HDFC Top 100 has consistently delivered returns to its investors. Mr. Prashant Jain has been able to deliver long term growth for the fund. This is highlighted by the returns that the fund has generated as compared to the benchmark

A 5 yearly return of 16.6 percent is commendable as the inflation rate in the country has been decreasing. In fact, this return has been generated by buying large caps and sticking to them for a considerable period of time.

A major portion of the fund is attributable to the Financials (37.9 percent) and Energy (24.5 percent). These comprise of top names in the industry such as ICICI Bank Ltd., SBI, HDFC Bank Ltd., Reliance Industries Ltd., NTPC Ltd., and Axis Bank Ltd.)

Key Information

Launch Date 01 – Jan – 2013
AUM (Size) 15,264 crores
Minimum SIP 500
Minimum for First Investment 5000
Performance w.r.t its benchmark Has beaten the benchmark NIFTY 100 TRI over consistent periods of time
Age of the fund 6 years
Expense Ratio 1.41%
Turnover 24%
Exit Load If the fund is redeemed between 0 to 12 months, exit load is 1%
Type Large Cap
Fund Manager Prashant Jain

Investment Objective

The investment objective of the fund is to generate long term capital appreciation by investing in a portfolio of equities and equity linked instruments in the BSE 200 Index.

Holding Analysis

3.HDFC Balanced Advantage Fund – Direct – Growth

Consistency in beating the benchmark, low expense ratio, focus on key sectors such as financial and energy has rendered HDFC Balanced Advantage Fund beat the other funds in its categories.

Financials is a key sector for the economy and given the number of reforms and government support to this sector, it is going to be growing at a very fast pace.

Other marquee names in the list are Infosys, Power Grid Corporation India Ltd., NTPC Ltd., Power Finance Corporation Ltd., L&T Ltd.

Investors should therefore have an investment horizon of 5 to 7 years before starting an SIP in this fund.

Key Information

Launch Date 01 – Jan – 2013
AUM (Size) 38,502 crores
Minimum SIP 500
Minimum for First Investment 5000
Performance w.r.t its benchmark Has beaten the benchmark VR Balanced TRI over consistent periods of time
Age of the fund 6 years
Expense Ratio 1.19%
Turnover 17%
Exit Load If the fund is redeemed between 0 to 12 months, exit load is 1%
Type Hybrid – Balanced Advantage
Fund Manager Srinivas Rao Ravuri

Investment Objective

The aim of the fund is simple and to the point.

The fund invests in equity and equity related instruments and aims to generate long term capital appreciation. A part of the portfolio is also invested in debt related instruments.

Holding Analysis

4.HDFC Mid-Cap Opportunities Fund –Direct – Growth

Launched in 2013, the fund has met the expectations of investors by investing in small and mid-cap stocks

The fund manager, Mr. Chirag Setalvad has extensive experience in the field of fund management, equity research and investment banking.

He has been in the industry for more than 20 years now. Therefore, he, along with the team has guided the fund towards large return seeking.

Few of the multibagger stocks in the portfolio are Sundaram Fasteners, Balkrishna Industries Ltd., City Union Bank Ltd., Aarti Industries Ltd., Voltas Ltd., RBL Bank Ltd., Tata Chemicals.

Key Information

Launch Date 01 – Jan – 2013
AUM (Size) 21,085 crores
Minimum SIP 500
Minimum for First Investment 5000
Performance w.r.t its benchmark Has beaten the benchmark NIFTY Midcap 100 TRI over consistent periods of time
Age of the fund 6 years
Expense Ratio 1.12%
Turnover 28%
Exit Load If the fund is redeemed between 0 to 12 months, exit load is 1%
Type Mid-cap
Fund Manager Chirag Setalvad

Investment Objective

The fund seeks to generate long term capital appreciation by investing in equity and equity related securities in the small and mid-cap space.

Holding Analysis

5.HDFC Hybrid Equity Fund – Direct – Growth

Launched in 2013, HDFC Hybrid Equity Fund is managed by Mr. Vinay Kulkarni.

The allocation of financials in equities is approximately 37 percent; whereas roughly 64 percent in debt portfolios. The rest has been invested in sovereign debt funds.

Sticking to large-cap names (HDFC Bank Ltd., ICICI Bank Ltd., Axis Bank Ltd., and HDFC Ltd.) has also led the fund to beat the benchmark over a long period of time.

Key Information

Launch Date 01 – Jan – 2013
AUM (Size) 21,902 crores
Minimum SIP 500
Minimum for First Investment 5000
Performance w.r.t its benchmark Has beaten the benchmark VR Balanced TRI over consistent periods of time
Age of the fund 6 years
Expense Ratio 1.13%
Turnover 8%
Exit Load If the fund is redeemed between 0 to 12 months, exit load is 1%
Type Hybrid Aggressive
Fund Manager Vinay Kulkarni

Investment Objective

The primary objective of the fund is to generate long term capital appreciation for the fund in the long term.

It achieves so by investing in a diversified portfolio of mid cap and large cap companies. A part of the fund also invests in the debt instruments.

Holding Analysis

Why HDFC Mutual Fund?

1.HDFC Mutual Fund has been at the forefront of the Indian mutual fund industry. It is now the second largest AMC in terms of Asset under Management (AMC). This highlighted the trust investors have on the name of the fund house;

2.The number and types of funds it offers cater to the needs of all kinds of investors. Be it an investor for long term, short term or investors with different risk appetite.

3.The risk-adjusted returns for most of the funds have been exceptional. Therefore, fulfilling the needs of the investors.

4.Robust performance has been possible due to a strong team. Fund managers such as Prashant Jain, Chirag Setalvad, Vinay Kulkarni are top rated names in the industry when it comes to fund management.

Also Read: HDFC Mutual Funds: Renaming and Re-Categorization- The Fully Updated List

Happy Investing!

Disclaimer: The views expressed in this post are that of the author and not those of Groww