One of the longest-running AMCs in India, HDFC AMC has been helping investors make sound investment decisions responsibly and unemotionally for over 23 years.
It is one of the biggest AMCs in India, with more than 4,53,635 crores of average AUM from January to March 2023.
HDFC Focused 30 Fund
Investment Objective
To generate long-term capital appreciation/income by investing in equity and equity-related instruments of up to 30 companies.
Investment Process
- An open-ended equity scheme investing in a maximum of 30 stocks in large-cap, mid-cap, and small-cap categories (i.e., multi-Cap)
- It follows a focused approach to investing in a portfolio of up to 30 high-conviction stocks, which are expected to outperform the market over the medium to long term.
- The Stock selection is focused on growth at reasonable valuations.
- It aims to generate better risk-adjusted returns through a focused portfolio backed by extensive in-house research conviction.
Portfolio Composition
The portfolio holds significant exposure in large-cap stocks, and major sectoral exposure is to Banks, which account for more than a quarter of the portfolio. The top five sectors hold more than 50% of the portfolio.
Source: HDFC MF
Top 5 Holdings for HDFC Focused 30 Fund
| Name | Weightage % |
| ICICI Bank Limited | 9.24 |
| HDFC Bank Ltd. | 8.07 |
| Infosys | 5.01 |
| Bharti Airtel Ltd | 4.54 |
| HCL Technologies Limited | 4.35 |
Source: HDFC MF
Performance Over the Years
| Scheme Returns (%) | S&P BSE 500 TRI (%) | |
| 1 Year | 12.83 | 1.12 |
| 3 Year | 33.26 | 26.66 |
| 5 Year | 11.93 | 11.31 |
| 7 Year | 14.06 | 13.77 |
| 10 Year | 14.96 | 14.93 |
Source: Valueresearch
Since its inception, the fund has generated a CAGR (Compounded Annual Growth Rate) of 14.94%.
Fund Manager
- Ms. Roshi Jain has been the fund manager of HDFC focused 30 Fund since January 2022. She has a total of over 17 years of experience.
- Mr. Priya Ranjan has been a co-manager of the fund since May 2020. He has more than 15 years of total experience.
Who should invest in the HDFC-focused 30 Fund?
HDFC Focused 30 primarily invests in large-cap stocks where the number of stocks is restricted to 30. This fund is suitable for investors looking to invest in large-cap companies for a long-term time horizon.
Time Horizon
- One should look at investing for at least five years or even more.
- Investment through Systematic Investment Plan (SIP) may help in tackling the volatility of the broader equity market.
Conclusion
The HDFC-focused 30 Fund has a proven track record of corporate governance, ESG sensitivity, and transparency.
The company has a disciplined approach to investing, focuses on good quality companies, and emphasizes reasonable valuations.
It has delivered a CAGR (Compounded Annual Growth Rate) of 14.94%. As we can see, the fund has outperformed the benchmark over the long term. Investors can witness wealth creation by staying invested for the long term.
Disclaimer
This is not recommendation advice. All information in this blog is for educational purposes only.
