The Hindu Business Line : HDFC Top 200: Invest

AN investment can be considered in HDFC Top 200. This diversified equity fund has a strong and stable long-term track record. Top 200 has beaten the broad-based BSE 200 every year since 2000. It continues to be an out performer.

Over the past year, it has generated a strong return of 56 per cent, beating the performance of other diversified funds with a similar profile and good track record such as Templeton India Growth and HSBC Equity. For a first-time investor, this fund may be considered ahead of the rest.

The fund invests predominantly in stocks that form a part of BSE 200. Sticking to predominantly large-cap stocks, the fund comes with a lower risk profile than some of the other diversified funds that invest heavily in mid-cap stocks to pep up returns. The fund has displayed the ability to weather bearish phases as well, containing declines more successfully than its peers.

The portfolio is currently heavy on IT stocks. Software, banking and oil stocks have routinely figured in the top three holdings of the fund. The portfolio comprises about 60 stocks, but 50 per cent of its assets are concentrated in the top-10 stocks. Prominent mid-cap stocks that figure in its portfolio and hold promise include Container Corporation, Century Textiles, Crompton Greaves and Siemens.

Fund facts: HDFC Top 200 was launched in 1996. The fund has an asset base of Rs 570 crore. The minimum investment amount is Rs 1,000. Dividend and growth options are available.