Hdfc Top 100 Fund Idcw Reinvestment

HDFC Top 100 Fund – IDCW Reinvestment is a type of investment scheme. The term “HDFC Top 100 Fund,” refers to the feature that the fund predominantly invests in the stocks of top 100 companies in India, ranked based on market capitalization. On the other hand, “IDCW Reinvestment” means that the dividends (profit) generated by the fund are automatically reinvested, buying more units. The investors can benefit from this reinvestment when they redeem their units at a higher value later. However, the reinvested income into the fund is taxed as per the investor’s applicable tax bracket, even if the investor does not receive any cash payout.

Moreover, the fund was launched on October 11, 1996, and is managed by HDFC Asset Management Company Limited. The major objective of HDFC Top 100 Fund – IDCW Reinvestment is to provide long-term capital appreciation to its investors while mitigating the risk by investing in well-established companies.

Key Parameters

Following are the key parameters of HDFC Top 100 Fund – IDCW Reinvestment.

• Fund Type: Open Ended

• Fund Category: Equity – Large Cap

• Fund Launch Date: October 11, 1996

• Fund Manager: Mr Rahul Baijal.

• AUM: Rs 25,775.56 Cr (as of August 30, 2023)

• NAV: Rs 58.775 (as of August 30, 2023)

• Expense Ratio: 1.86% (as of June 30, 2023)

• Exit Load: 1% if redeemed within 1 year

• Benchmark: NIFTY 100 Total Return Index

• Risk-o-metre: Very High

• Risk Grade: Above Average

• Return Grade: High

Taxation

The taxation of HDFC Top 100 Fund – IDCW Reinvestment depends on the duration and amount of your investment.

• If you sell or redeem your units before one year of investing, you will be subject to the short-term capital gain tax, which amounts to 15% of your profits.

• If you sell or redeem your units after one year of investing, you’ll be subject to long-term capital gain tax, which amounts to 10% of your profits. Notably, if your profits are below ₹1 lakh, you will be exempted from this tax.

• The income or profits generated by the fund are declared as dividends (IDCW) by the fund and are automatically reinvested in the fund by buying more units at the prevailing net asset value (NAV). These dividends are also subject to tax deduction at the source (TDS). For Indian resident investors, this tax is 10%, and for non-resident investors, it’s 20%.

Holdings

The holdings of HDFC Top 100 Fund – IDCW Reinvestment refers to the stocks or investments that the fund owns. Scrutinising a list of holdings assists investors in understanding the strategies and style the fund manager follows and the risk and returns the fund aims for. Notably, these holdings can change every so often based on the market conditions and the fund manager’s decision.

As of July 31, 2023, the top 10 holdings of HDFC Top 100 Fund – IDCW Reinvestment are as follows:

Returns

Mutual fund returns indicate the contrast between how much your investment has grown compared to the initial amount you invested. Hence, analysing a list of returns helps you understand how well the fund has performed during the past year over varying time periods such as 3 months, 1 year, 3 years, 5 years, and 10 years.

Let’s take a look at the list of returns of HDFC Top 100 Fund – IDCW Reinvestment.

The Investment Objective of HDFC Top 100 Fund – IDCW Reinvestment

The investment objective of HDFC Top 100 Fund – IDCW Reinvestment is to generate long-term capital appreciation by investing in the top 100 large-cap companies in India. By doing so, the fund can expect reasonable benefits from their performance over the long term. Thus, HDFC Top 100 Fund – IDCW Reinvestment is well-suited for individuals who are willing to invest for a long time horizon and are comfortable accepting a certain level of risk associated with equity investments.

Minimum Investment and Lock-in Period

Following are the Minimum investment and lock-in period of HDFC Top 100 Fund – IDCW Reinvestment:

Minimum Investment

The minimum investment amount for this fund is ₹5,000 for lump sum and ₹100 for SIP. This means that you need to invest at least ₹5,000 if you want to make a one-time investment, or at least ₹100 if you want to invest regularly through a systematic investment plan (SIP). Moreover, you can gradually increase your SIP amount as per your convenience and financial goals.

Lock-in Period

The lock-in period of HDFC Top 100 Fund – IDCW Reinvestment is 1 year. I.e., if you redeem or sell your units within 1 year from the purchase date, you will have to pay an exit load of 1% of the sell value. However, if you hold your units for more than 1 year, you can redeem or sell them without any exit load.

AMC Information

The AMC of HDFC Top 100 Fund – IDCW Reinvestment is a company that co-partnership between Housing Development Finance Corporation Limited (HDFC) and Standard Life Investments Limited (SLI). Started in 1999, in Churchgate, Mumbai. Today, the company stands as India’s largest and most profitable mutual fund manager, with Rs 3.7 trillion in assets.

Take a look at some important information about the HDFC Top 100 Fund – IDCW Reinvestment:

• Name: HDFC Asset Management Company Limited
• Setup Date: 30-Jun-2000
• Incorporation Date: 10-Dec-1999
• Website: https://www.hdfcfund.com/
• Address: HDFC House, 2nd Floor, H.T. Parekh Marg, 165-166, Backbay Reclamation, Churchgate, Mumbai – 400020
• Phone: 022 – 66316333
• Email: cliser@hdfcfund.com
• CEO: Mr Navneet Munot
• CIO: Mr Prashant Jain
• AUM: Rs 5.3L Cr
• Total Schemes: 133 across equity, debt, hybrid, solution-oriented, and other categories.