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Continue with HDFC Top 200

HDFC Top 200’s rating has fallen to 4-stars, but it remains a good fund to invest in…

I have been reading that entry load will be reintroduced. Will it apply to old investments as well? I have been investing in HDFC Top 200 for the past 3 years. The fund’s rating has fallen from 5-star to 4-star. Should I continue investing in it?

While there is a lot of talk about the entry load being reintroduced, we believe that it won't happen. But hypothetically speaking, even if the entry load is reintroduced, it won't be applied to the investments you’ve already made. HDFC Top 200 has fallen from 5-star to 4-star before also, but it remains a good fund to invest in. The fall in rating should be used as a warning system; you should look at your investments if the fund’s rating falls further. But right now, continue investing in HDFC Top 200. The fund did poorly in 2011, but such patches of underperformance are not unusual.

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