This CRISIL Rated 3 Star Index Fund Has Offered Good Returns On Long Term Investments

Several mutual fund companies are vigorously promoting mutual funds such as index funds. Low-cost index plans are on the radar of intelligent investors, who are expressing their preference for them in every mutual fund forum. However, certain index funds with high historical returns are also smart investments. We've chosen one such index fund that has provided high returns on long-term investments. If you're a novice mutual fund investor who's wondering what all the excitement is about, here are some key features about this fund that will help you improve your portfolio.

HDFC Index Sensex Direct Plan-Growth

NAV	AUM	Expense Ratio
Rs 498.747	Rs 2990.8 Cr	0.20%

HDFC Index Sensex Direct Plan-Growth is a Large Cap equity mutual fund scheme from HDFC Mutual Fund. It is an open-ended medium-sized fund of its category and was launched on 01 January 2013. HDFC Index Fund Sensex Plan-Direct Plan has Rs 2990 Crore AUM as of on 25-Feb-2022 and the latest declared NAV is Rs 498.747. Its expense ratio is less than its category average expense ratio. The fund managers of the fund are Krishan Kumar Daga and Arun Agarwal. The minimum investment for lump sum payment of this fund is Rs 5000 and for SIP one can start with Rs 300. HDFC Index Fund Sensex Plan-Direct Plan has no lock-in period. The fund could potentially beat inflation in the long run. The rating agency has rated this fund 3 stars. Despite this, it is a moderately risky fund and does not guarantee returns.

Returns

HDFC Index Sensex Direct Plan-Growth returns of the last 1-year are 8.19% average returns, which is less than its category average annual return of 10.29%. The funs continues below category average returns in 2nd year as well. However, in 3 and 5 years it has given better returns than its category average returns. Since its launch, it has delivered 12.95% average annual returns, better than its category average returns.

Lump-Sum Returns

Period Invested	Absolute Returns	Annualised Returns	Category Avg
1 Year	8.19%	8.19%	10.29%
2 Year	37.18%	17.10%	18.21%
3 Year	55.56%	15.82%	15.21%
5 Year	96.67%	14.47%	13.16%
Since Inception	204.80%	12.95%	8.80%

SIP Returns

Period Invested	Absolute Returns	Annualised Returns
1 Year	0.98%	1.81%
2 Year	25.05%	23.02%
3 Year	30.82%	18.18%
5 Year	45.90%	15.07%

Portfolio

The majority of the fund's assets are invested in the financial, technology, energy, consumer staples, and construction sectors. In comparison to other funds in the category, it has acquired less exposure in the financial and technology industries. Reliance Industries Ltd., HDFC Bank Ltd., Infosys Ltd., ICICI Bank Ltd., and Housing Development Finance Corpn. Ltd. are the fund's top five holdings.

Disclaimer

Mutual fund investments are subject to market risk. Read all scheme-related documents, and Terms and Conditions carefully before investing. The above-mentioned information is purely informational and doesn't guarantee any return. The Greynium Information Technologies and the Author are not liable for any losses caused as a result of a decision based on the article.