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HDFC Growth Fund

HDFC Growth took off in August 2000, aiming to invest its corpus in fundamentally sound companies. While the fund has been managed to this plan, with the tumbling markets the fund is hovering below par

HDFC Growth took off in August 2000, aiming to invest its Rs 130 crore corpus in fundamentally sound companies. While the fund has been managed to this plan, with the tumbling markets the fund is hovering below par.

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

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. While buying quality stocks, the fund has shopped across capitalisation for it holds a healthy mix of large and mid cap 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, technology 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. While HDFC Growth fund has till now got its investment framework in place, it will take time to offer returns to the investor.