Hdfc Top 100 Fund Growth Direct Plan

HDFC Mutual Fund’s Top 100 scheme is designed to offer long-term capital growth to its investors. This open-ended equity scheme achieves its objective by directing at least 80% of its assets towards securities of large-cap companies. ‘High-risk and higher rewards’ is the mantra of this diversified equity fund.

Being a direct plan, the scheme requires an investor to invest directly in the fund without any distributor or intermediary. The ‘growth’ option implies that the investors will not earn periodic returns through dividends from this scheme. Instead, the profits will be reinvested into the scheme to offer a long-term wealth generation.

This scheme is best suited for high-risk-bearing investors who can stay invested for a time period of 3 years or more. Fund managers with decades of experience in Indian financial markets actively manage the scheme. In this article, we take a look at the growth prospects offered by HDFC Top 100 Fund- Growth- Direct Plan.

Key Parameters

There are several aspects of a mutual fund that indicate its performance. Take a look at the following parameters before deciding to invest in HDFC Top 100 Fund- Growth- Direct Plan.

• Fund House: HDFC Mutual Fund
• Fund Type: Diversified Equity
• Benchmark Index: NIFTY 100 (Total Returns Index)
• Time Horizon: 3 years or more
• Lock-in Period: N/A
• Riskometer: Very High
• Fund Manager: Rahul Baijal
• Exit Load: 1% upon redemption within a year
• Expense Ratio: 11%
• Minimum Investment Amount: 100
• Minimum Additional Investment Amount: 100
• Minimum SIP Investment Amount: 100
• Minimum Withdrawal: 100

Tax Treatment

The HDFC Top 100 Fund- Growth- Direct Plan is taxed according to the following slabs:

• A 15% Short-Term Capital Gains (STCG) tax on profits made by redeeming the fund before 1 year.
• No tax on profits up to ₹1 lakh upon redeeming the fund after 1 year.
• A 10% Long-Term Capital Gains (LTCG) tax on profits higher than ₹1 lakh upon redeeming the fund after a period of 1 year.

Investment Objective

HDFC Top 100 Fund- Growth- Direct Plan, managed by Mr. Rahul Baijal, follows an investment strategy of investing at least 80% of its AUM in large-cap stocks. The stocks of these companies are less volatile as compared to others. They can also absorb market risks better as these are mostly seasoned companies which have been operating for years.

The HDFC Top 100 Fund is a diversified mutual fund scheme. This means that the fund managers may invest in debt, money market and other hybrid securities as well. However, investments in debt securities can go up to 20% only and the fund predominantly remains an equity scheme.

The end goal of the scheme is to offer long-term capital appreciation to investors. Investors can visit HDFC Mutual Fund’s website and click ‘Invest Now’ to start investing in the scheme.

Minimum Investment and Lock-in Period

Interested investors can start investing in the fund with amounts as low as ₹100. The HDFC Top 100 Fund accepts lump sum and SIP payments. Such reasonable minimum amounts make it an easily accessible mutual fund scheme, assisting investors of all kinds in wealth generation.

There is no lock-in period specified for this fund. This implies that a fundholder can redeem their units as and when they want. However, a 1% exit load charge is applicable on redemptions made within 1 year of purchase.

AMC Information

HDFC is a trusted name in Indian financial markets. The HDFC Asset Management Company is a joint venture between HDFC Limited and abrdn Investment. Total assets worth ₹4.4 trillion stood under the fund house’s management as of 31st March 2023. A strong network of branches across 200 cities makes HDFC Mutual Fund’s products easily accessible to everyone.

• Registered Office: HDFC House, 2nd Floor, H.T. Parekh Marg, 165-166, Backbay Reclamation, Churchgate, Mumbai – 400 020.
• Contact Number: 1800-3010-6767/ 1800-419-7676
• E-mail: hello@hdfcfund.com