Two of the oldest equity schemes of HDFC Mutual Fund and ICICI Prudential have completed 27 years and 21 years delivering extraordinary returns for investors.
HDFC Top 100 Fund, an open-ended equity scheme investing largely in large-cap stocks, has completed 27 years of operation. The fund has delivered Compound Annual Growth Rate of 19 per cent. A SIP of ₹10,000 invested systematically on the first business day of every month (total investment ₹32.40 lakh) in HDFC Top 100 Fund would have grown to ₹6.88 crore by September 29.
Rahul Baijal, Senior Fund Manager (Equities), HDFC Mutual Fund, said the fund’s consistent performance over the past 27 years is a testament to our rigorous research, disciplined investment approach, and a focus on well-established businesses. Large-cap stocks offer stability and better risk-adjusted return, making them an attractive option for investors, he added.
Similarly, ICICI Prudential Multi-Asset Fund has completed 21 years and garnered an AUM of ₹24,061 crore, which accounts for nearly 57 per cent of the total AUM in the multi-asset allocation category.
Wealth creation
A lump-sum investment of ₹10 lakh at the time of inception (October 2002) would be about worth about ₹5.49 crore as of September-end.
Nimesh Shah, Managing Director, ICICI Prudential AMC, said the wealth creation journey of multi-asset fund is a testament to the fact that judicious asset allocation across asset classes works well for the investor over the long term.
S Naren, ED & CIO, ICICI Prudential AMC, said the performance of several asset classes over the previous decade and beyond shows that the top-performing asset class has changed every other year.
Spreading one’s allocation across asset classes is one of the way to profit in this scenario so that the portfolio as a whole may take advantage of the potential gains.