HDFC Equity Savings Fund : Ensure Capital Growth
HDFC Equity Savings Fund is an equity scheme from HDFC Mutual Fund to ensure capital growth and save taxes. It invests in a mix of debt and equity instruments. To provide stability and build a saving’s habit, the investors invest in equity savings fund which follows a hybrid funds’ pattern while investing in various companies.
The scheme was first launched on 17th Sept 2004 with the purpose to save money of the investors.
HDFC Equity Savings Fund : Investment Philosophy
HDFC Equity Savings Fund seeks to offer capital appreciation to investors by investing the accumulated money in equity & equity related instruments, debt & money market securities and Arbitrage opportunities. A team of fund managers, Anil Bamboli, Krishan Kumar Daga and Vinay R Kulkarni handles the portfolio of HDFC Equity Saving Fund. They work hard to choose the quality stocks for the portfolio to provide better returns than fixed deposits.
HDFC Equity Savings Fund : Performance Analysis
Since inception, the fund has maintained an annualised rate of returns at 9.28% as on 31st Oct. In last 3-years, this mutual fund has generated 10.09% returns which are higher than the category’s average of 6.44% and benchmark returns of 7.41%. Considering the performance of the fund in last 5-years, it has generated trailing returns of 9.81% which is higher than the benchmark consideration of 8.76%. Further, HDFC Equity Savings Fund has also outperformed the benchmark in 10-years by producing 10.44% returns than 8.77%, respectively.
When we consider the risk measures, the beta of the scheme is 1.23, while category beta is 0.95 which shows that the fund is riskier than most of the funds in the category. The standard deviation for the fund is 6.50% which is higher than the category average and benchmark. Overall, this is not a risky fund and offers savings option to the investors.
HDFC Equity Savings Fund : Detailed Portfolio
HDFC Equity Savings Fund has total 171 stocks while top 10 holdings consist 27.69%. Approximately 35.33% of the assets are allocated to equity, followed by 30% in debt, and 34.67% in cash & cash equivalents.
Approximately 30.85% of the debt allocation is invested in unrated companies. Considering sector-wise allocation in equity instruments, HDFC Equity Savings Fund invests in energy (10.51%), financial (7.66%), technology (3.4%), construction (3.29%), metals (3.28%), FMCG (1.69%), healthcare (1.33%), automobile (1.32%), chemicals (1.16%), engineering (.99%), and services (.69%). The top equity holdings are in companies such as Reliance Industries, ICICI Bank, NTPC, Infosys, HDFC, Tata Steel, etc. These all information are noted for 1st Nov 2018.
Who Should Invest in HDFC Equity Savings Fund?
HDFC Equity Savings Fund is suitable for investors who are seeking capital appreciation over the medium to long term by investing in a hybrid scheme. Further, the investors who want to save taxes under equity category and generate capital appreciation at the same time, this scheme is perfectly suitable for them.