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HDFC Growth Fund

Dhirendra Kumar

HDFC Growth is a diversified equity fund launched in August 2000. Entry in to the fund is at a load of 2 per cent while exit is on a no-load basis.

Launched in the plunging markets of 2000, the fund garnered an impressive sum of Rs 130 crore. The fund sought to invest in fundamentally sound companies with intrinsic strength.

FUND BASICS   Objective    Size (Cr)    NAV: 15/05/2001    Exit Price    Entry Price    Total Return   Growth   107.80   7.42   7.42   7.57   -25.82%

Till the fag end of 2000, the fund took a conservative stance by holding an average 44 per cent in cash. However, in the plunging markets of December 2000, the fund sought to bottom-fish and emerged with a predominantly invested corpus.

BENCHMARK COMPARISONS (%) (11/05/2001)      1M    3M    6M    1Yr    3Yr   Fund   5.32   -20.47   -23.76   -   -   Nifty Tot. Ret.   6.97   -18.71   -7.80   -12.14   0.66   Sensex   7.05   -19.05   -9.68   -16.27   -3.99   Obj. Avg.   7.90   -22.99   -16.77   -22.98   3.97

While building a portfolio of quality stocks, the fund has also retained a well-diversified sectoral stance in the portfolio. The fund is also well spread out and has stayed away from scrip-specific concentration. The fund has shopped across capitalisation for it holds a healthy mix of large and mid cap quality stocks. While technology sector was a top holding in its early days, in recent times consumer non-durable sector has emerged on the top, followed by pharma and petrochemical stocks.

With the market in a volatile zone, the fund has been ruling below par for a larger part of its tenure. That said, equity investing even through funds, is meant for the longer haul, to generate meaningful returns. Though HDFC Growth Fund has got its investment framework in place now, it will take time to offer returns to the investor.

Top Holdings (30/04/2001)      Value (Cr)    % of Assets   G E Capital Services (debt)   8.00   7.42   BPCL   7.31   6.79   Reliance Ind.   7.02   6.51   Asian Paints   6.53   6.06   HLL   5.26   4.88   Smithkline Beecham Con.Healthcare   4.93   4.58   Sundaram Finance (debt)   4.88   4.52   Britannia Industries   4.52   4.19   Infosys Technologies   4.45   4.13   Hero Honda Motors   4.20   3.89   I T C   4.20   3.89   Container Corpn. Of India   4.14   3.84   Hindalco Industries   4.05   3.76   Marico Industries   4.01   3.72   Knoll Pharmaceuticals   3.51   3.25

Source: Value Research

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