This focused mutual fund invests 93% in stocks, delivering up to 80% returns in 2 years: rated 4 stars by Crisil

Personal finance

oi-Kuntala Sarkar

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Outside of the equity market, Indian investors are now quite focused on mutual funds and SIPs for high short-term returns. As the inflation rate is currently very high in the country, investors are eager to beat the inflation rate with their income.

Here, a targeted fund was discussed which gave high returns in the short and long term.

This focused mutual fund invests 93% in stocks, delivering up to 80% returns in 2 years

HDFC Focused 30 Fund – Direct Plan – Growth

This focused equity fund has performed quite well over the long term for SIPs. Over the past year the SIP return (absolute return) was 2.36%, over the past 2 years it had returns of 25.95%, over the past 3 years it had gave returns of 39.15%, and over the past 5 years it has fetched 43.33% returns. The annualized SIP returns of the HDFC Focused 30 Fund have been 23.93% over the past 2 years and 22.67% over the past 3 years. However, the Indian stock market has not been very bullish over the past year, so the annualized return for this fund has been 4.39% over the past year. Although many funds have fallen sharply over the past year, this mutual fund has performed well even in the short term.

The absolute mutual fund returns of the HDFC Focused 30 Fund have been better over the past two years. Over the past year it has yielded 15.86%, over the past 2 years it has yielded returns of 80.42%, over the past 3 years it has yielded returns of 43 .65% and over the past 5 years it has given returns of 58.41%. Over the past 2 years, the HDFC Focused 30 Fund’s annualized returns have been 34.32%, well above the category average of 25.46%. Additionally, over the past 3 years, its annualized return has been quoted at 12.81%, slightly above the category average of 12.84%.

(Data through June 29, 2022)

NAV and AUM

It is a target capitalization mutual fund SIP investment option which has a net asset value of Rs. 121.66. The assets under management (AUM) of this fund is Rs. 1439.84 crores. However, the fund’s expense ratio (ER) is 0.99%. However, the ER is slightly higher than the category average of 0.89%, which may affect your profitability. The expense ratio (ER) is the cost of owning a mutual fund or SIP, which will be charged by a mutual fund company to retail investors for managing the fund. Therefore, an ER below the category average can increase your profitability, and vice versa.

This SIP Mutual Fund mentioned above has been rated top with 4 stars by the rating agency Crisil.

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Article first published: Thursday, June 30, 2022, 11:54 p.m. [IST]

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