This Top Rated Index Fund Outperformed Benchmark, Gave 21.26% Annualised Returns On 3 Years SIP

HDFC Index Fund - S&P BSE Sensex Plan, as the name suggests is Index Fund. It is a top-rated Equity Mutual Fund with good returns on both, one-time as well via SIP. It is a more than 20 years old index fund launched by the HDFC Mutual Fund house on July 17, 2002. Below are the key details of the scheme:

HDFC Index Fund - S&P BSE Sensex Plan

It is a large-cap equity Index Category fund replicating/tracking S&P BSE SENSEX Index. It is an open-ended medium-sized fund of its category. Value Research and CRISIL have given the fund ratings of 4 stars and 3, respectively. It is regarded as a very high-risk investment strategy.

Under the Direct Plan-Growth option of the fund, its declared Net Asset Value (NAV) as of November 24, 2022, is Rs 578.6616. Its Assets Under Management (AUM) are worth Rs 4,100 crore as of October 31, 2022.

The fund aims to generate returns that are commensurate with the performance of S&P BSE, subject to tracking errors. This fund comes with no lock-in period.  The benchmark of the fund is S&P BSE Sensex TRI. 

According to the HDFC Mutual Fund, the Scheme will be managed passively with investments in stocks in a proportion that is as close as possible to the weightages of these stocks in the S&P BSE SENSEX Index. The investment strategy would revolve around reducing the tracking error to the least possible through regular rebalancing of the portfolio, taking into account the change in weights of stocks in the Index as well as the incremental collections/redemptions.

Investment Details

A monthly SIP of Rs 2000 in this fund would i.e. Rs 74,000 in 3 years would give a total of Rs 1,01,043 i.e. 23.65% annualised returns in 3 years.

• Minimum Investment - Rs 100 
• Minimum SIP Investment - Rs 100
• Minimum withdrawal - Rs 100
• Exit Load -0.25% for redemption within 3 days
• Expense Ratio - 0.20% as on 31 October 2022

Annualised Returns

Lump-Sum Investment Returns

Since its inception, the fund (Direct-Growth) has given a 13.59% average annual average return, which is double the category average return of 7.92%. It has performed better than its benchmark. However, has given average performance among its peers.

Investment Tenure	Returns
1 Year	10.63%
2 Year	20.16%
3 Year	16.29%
5 Year	14.20%

Returns on SIP

SIP Tenure	Returns
1 Year	19.82%
2 Year	16.07%
3 Year	21.26%
5 Year	17.03%

Portfolio

The fund has 99.94% investments in domestic equities and 0.06% in cash & cash equivalent instruments. Out of 99.94% equity investments, 87.71% are in large-cap stocks. The fund invested in total of 30 stocks and total of 11 sectors, respectively.

 
These 11 sectors include Financial Sector, Technology, Energy, Consumer Staples, Automobile, Construction, Materials, Communication, Healthcare, Consumer Discretionary, and Metals & Mining. 

The top 10 holdings of the fund include Reliance, HDFC Bank, ICICI Bank, Infosys, Housing Development Finance, Tata Consultancy Services (TCS), ITC, Kotak Mahindra Bank, Axis Bank, and Larsen & Toubro.

 

Disclaimer

Mutual fund investments are subject to market risk. Read all scheme-related 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.