Performance review: HDFC Top 100 Fund

HDFC Top 100 Fund has brought good fortune for HDFC asset management company (AMC). Decades ago, it used to be one of the best performing funds, and needless to say, Prashant Jain is a seasoned fund manager. However, now, it has certainly lost its grounds. In this article, we would review the performance of HDFC Top 100 Fund.

Source: Value Research

The above image shows you the performance of HDFC Top 100 Fund from December 2000 to November 2010 (10-year period). Indeed, the fund has outrightly performed better than its benchmark. In fact, it has outperformed with a good margin. However, the story changes completely after 2010.

Source: Value Research

In the above graph, you can clearly see that the same fund is struggling to beat the index. In fact, in recent times, it has underperformed the index by a huge margin. This suggests that you would have been better off investing in an index fund or exchange-traded funds (ETF) tracking S&P BSE 100 TRI or Nifty 100 TRI.

Hence, the moral of the story is that one should never stick to a mutual fund and instead, just review and timely exit them.