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HDFC Mutual Fund: Consistent Player

The way I look at it that everything cannot be attributed to the entry load ban. There are higher redemptions because of higher markets levels, offering profit booking opportunities

Despite market swings, redemptions and investor anxiety, this fund has been a consistent performer. These are signs of a disciplined market player. “Our growth model over the past four years has been through systematic plans,” stresses Barve. Its not surprising that this AMC alone does over a million SIP transactions every month.

Disappointing AUM growth: I would not completely agree with it. Redemptions have indeed been high due to the high market level. Redemptions being high have nothing to do with the entry load ban. Redemptions account for a very small percentage of equity assets. Gross sales are not very different from what they used to be before the ban.

Regulatory changes: I cannot generalize and say that all the changes would be in favour of investors. However, I believe the changes are well-intentioned and time will prove how good they are.

State of the market: Economic fundamentals have been very strong at the macro level. They look even stronger when you compare it to the situation in Europe and North America. At the micro level, corporate performance and earnings continue to be between strong and stable. I would ask investors to have at least a 3-5 year view of the market. A long-term view in any market condition is what we suggest.

The road ahead: The one-point religion of our fund house is to build assets through SIPs. When you build assets through systematic plans, the AUM collection becomes market agnostic.