Invest Wisely: Hdfc Top 100 Fund Guide

HDFC Top 100 Fund is an open-ended large-cap equity scheme that falls under the HDFC Mutual Fund House. The fund was launched in 1996 and has an investment objective to provide long-term capital appreciation/income by investing predominantly in large-cap companies. The fund has no lock-in period and is suitable for investors looking for high returns over a period of 3-4 years. The expense ratio of the fund is 1.6% and it has generated a return of 15.41% in the last year. The current NAV or Net Asset Value of the fund is 1237.646 as of October 7, 2024.

How to invest in HDFC Top 100 Fund online

Investing in the HDFC Top 100 Fund online is a straightforward process. Here is a step-by-step guide on how to do it:

Step 1: Understanding the Fund

Before investing, it is essential to understand the nature of the HDFC Top 100 Fund. It is an open-ended large-cap equity scheme that falls under the category of diversified equity. The fund predominantly invests in large-cap stocks, aiming to provide long-term capital appreciation. As per SEBI regulations, it maintains a minimum exposure of 80% to large-cap stocks, which are currently defined as the 100 largest companies in India by market capitalization. These companies tend to be well-established, with a longer operational history, and are better equipped to navigate business pressures across various market cycles.

Step 2: Evaluating Risk and Returns

The HDFC Top 100 Fund carries a "Very High Risk" rating according to SEBI's Riskometer. It is crucial to acknowledge that investing in this fund comes with a substantial level of risk. In terms of returns, the fund has delivered average annual returns of 15.41% since its inception in January 2013. As of October 2024, the Net Asset Value (NAV) is ₹1237.646, and the fund size is ₹37,783 Crore.

Step 3: Choosing a Platform

You can invest in the HDFC Top 100 Fund directly from the website of the fund house, HDFC Mutual Fund. Additionally, you can use online platforms such as MF Central, MF Utility, or ET Money. These platforms offer a paperless and convenient way to initiate your investment.

Step 4: Deciding on Investment Type and Amount

When investing in the HDFC Top 100 Fund, you can choose between a one-time lump-sum investment or starting a Systematic Investment Plan (SIP). The minimum investment amount is ₹100, and the same amount applies to additional investments and SIPs. It is important to note that there is an exit load of 1% if you redeem your investment within one year.

Step 5: Completing the Investment Process

Once you have selected your preferred platform and decided on the investment type and amount, follow the specific instructions provided by the platform to complete your investment. This typically involves providing personal and bank account details and making the payment.

Remember to carefully consider your financial goals, risk tolerance, and investment horizon before investing. It is always recommended to consult the scheme-related documents and seek independent financial advice if needed.

HDFC Top 100 Fund's investment objective

The HDFC Top 100 Fund is an open-ended large-cap equity scheme that falls under the Equity: Large Cap category of funds. The fund's objective is to provide long-term capital appreciation and income by predominantly investing in large-cap companies.

This means that the fund managers are mandated to invest at least 80% of the fund's assets in large-cap stocks, which are the 100 largest companies listed on the Indian stock market with the highest market capitalisation. These larger, more established companies are expected to be less risky investments compared to smaller companies, and their stocks tend to fall less during market downturns.

The fund has been in operation since September 1996 and has delivered returns of 19.29% since its inception. As of August 2024, the fund had invested 99.42% in equity and 0.58% in cash and cash equivalents. The expense ratio of the fund is 1.61%.

The HDFC Top 100 Fund is suitable for investors who are looking to invest money for at least 3-4 years and are seeking high returns. However, these investors should also be prepared for the possibility of moderate losses in their investments.

HDFC Top 100 Fund's asset allocation

The HDFC Top 100 Fund is an open-ended large-cap equity scheme that falls under the Equity: Large Cap category of funds. The fund's objective is to provide long-term capital appreciation/income by predominantly investing in large-cap companies.

As of August 31, 2024, the fund's asset allocation was as follows: 99.42% in equity and 0.58% in cash and cash equivalents. The fund has delivered 19.29% returns since its inception 27 years ago.

The HDFC Top 100 Fund is mandated to invest at least 80% of its assets in large-cap stocks at all times. As of August 2024, the fund's asset allocation included around 96.96% in equities, 0% in debts, and 3.04% in cash and cash equivalents. The fund's top 10 equity holdings constitute around 56.45% of its assets, while the top 3 sectors account for approximately 51.65% of its assets.

The fund has no lock-in period, and the minimum investment required is Rs 100, with the same amount for additional and SIP investments. It is managed by Rahul Baijal and Amar Kalkundrikar, who have extensive investment experience.

The HDFC Top 100 Fund is suitable for investors seeking high returns and who are willing to invest for at least 3-4 years. However, these investors should also be prepared for potential moderate losses in their investments.

HDFC Top 100 Fund's performance

The HDFC Top 100 Fund is a large-cap fund that has been in operation for 27 years and 11 months. It has delivered 19.29% returns since its inception. As of 14-Aug-2024, the Net Asset Value (NAV) of the fund was ₹1,127.1250. The fund's Assets Under Management (AUM) stood at ₹37,081 Cr as of 31-Jul-2024.

The HDFC Top 100 Fund is mandated to invest at least 80% of its assets in large-cap stocks at all times. As of 31-Jul-2024, the fund had invested 99.42% in equity and 0.58% in cash and cash equivalents. The fund's portfolio turnover ratio was 15.50%, with 96.96% investment in domestic equities, of which 79.94% was in large-cap stocks and 3.65% in mid-cap stocks. The fund's top holdings include National Thermal Power Corporation Ltd, Larsen & Toubro Ltd, and Reliance Industries Ltd.

The expense ratio of the HDFC Top 100 Fund is 1.61, and it falls under the "very high" risk category as per SEBI's Riskometer. The fund is suitable for investors who are looking to invest money for at least 3-4 years and are seeking high returns. These investors should also be prepared for the possibility of moderate losses in their investments.

HDFC Top 100 Fund's tax implications

HDFC Top 100 Fund is an open-ended large-cap equity scheme that falls under the Equity: Large Cap category of funds. It is a high-risk investment option that has been in operation since September 4, 1996. The fund seeks to provide long-term capital appreciation/income by predominantly investing in large-cap companies.

Tax Implications of HDFC Top 100 Fund:

Short-Term Capital Gains Tax:

• If the mutual fund units are sold within 1 year of the investment date, short-term capital gains tax will be applicable.
• The current tax rate is 20%. Any cess or surcharge is excluded from this rate.

Long-Term Capital Gains Tax:

• If the units are sold after 1 year from the date of investment, long-term capital gains tax will apply.
• Gains up to Rs. 1.25 lakh in a financial year are exempt from tax.
• Gains exceeding Rs. 1.25 lakh will be taxed at a rate of 12.5%.

Dividend Distribution Tax:

• Dividend income is added to the investor's income and taxed according to their respective tax slabs.
• If an investor's dividend income exceeds Rs. 5,000 in a financial year, the fund house will deduct TDS (Tax Deducted at Source) of 10% before distributing the dividend.

Additionally, an exit load of 1% is charged if the units are redeemed within 1 year of investment.

Frequently asked questions