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Evaluating Performance

Periodically check on a fund's performance to evaluate its ability to achieve your goals…

Which is the better fund among DSPBR Top 100 Equity and HDFC Index Sensex Plus for a 20 years holding period and why? And what is the maximum number of funds an individual should hold?
- Srinivas Kini

Both DSPBR Top 100 Equity and HDFC Index Sensex Plus are large-cap funds which are highly rated and have a proven track record and performance. However, their investment mandates are different. While DSPBR Top 100 Equity invests largely in the 100 largest corporates by market capitalisation, listed on either BSE or NSE, HDFC Index Sensex Plus invests 80-90 per cent of its assets in companies that constitute the Sensex.

Compared to HDFC Index Sensex Plus, DSPBR Top 100 Equity is diversified and has better hedging possibilities, which is reflected in its performance. On a 20-year investment cycle, both funds are good bets, but remember that a fund that is good today need not necessarily be the best performer twenty years later. You need to regularly track the performance of the funds that you invest in and evaluate its performance with its peers and its ability to achieve your investment goals.

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