HDFC Top 200 Fund invests in S&P BSE 200 companies and it provides capital appreciation over the long term. Investors who are seeking investment in equity and equity-related instruments including equity derivatives can choose to invest in this fund to enhance their investment portfolio and to get higher returns associated with lower risks.
HDFC Top 200 Fund aims to generate capital appreciation for a long term by investing in the portfolio of equity and equity-related instruments. The investment portfolio of equity and equity-related instruments will be predominantly drawn from the S&P BSE 200 Index. By going forward, the Scheme also aims to invest in those listed companies which would qualify to be in the top 200 companies in terms of market capitalisation by BSE. This would include participation with the large IPOs where issue price depending upon the market capitalisation would help the company to be in top 200 companies listed on the BSE.
The scheme would mainly try to restrict the equity portfolio to BSE Top 200 scrips in order to reduce risk while maintaining steady and consistent growth. In order to avoid stock related risks, fund manager and their research team will be investing only in those companies or sectors which have been thoroughly researched and analyzed by them. Diversification of the portfolio will be done to reduce the risk factors. The scheme will be investing in up to 25% of net assets of scheme related derivatives which are introduced from time to time for balancing portfolio and hedging. The scheme may also invest a part of its net assets in overseas markets in ADRs, GDRs, mutual funds, bonds and overseas equity. At any point, if the investments in equity fall below 65% of the scheme, it would rebalance the composition. The Scheme will maintain its flexibility of investing in the range of debt and money market instruments. The investment made in money market instruments and debt Instruments will be according to the limits of the asset allocation table of the Scheme.