HDFC Equity's Stock Selection Strategy
Thursday, July 17, 2008
HDFC Equity Fund, one of the top performers in the Indian market has been around for 13 years now. [Originally from ITC Threadneedle then to Zurich and then into HDFC AMC] The silent and soft-spoken Sr. Fund Manager, Prashant Jain who rarely comments in the media has released a note celebrating 13 years of HDFC Equity Fund.
One thing that is worth noticing in the note is the stock selection procedure adopted by the company sticking to its internal process of "Avoiding the Big Mistakes" [ Real Estate, Brokerage Houses etc]. He further said,
Owning strong businesses, that are likely to grow earnings at above market rates. Focusing on long term prospects and valuations and ignoring short to medium term market aberrations i.e ignoring momentum stocks / stocks with excessive valuations if not justified by fundamentals. Remain diversified with exposure to mid-caps varying between a third to fourth of portfolio.You can read the complete article by Mr. Jain here. [PDF]
Published by DalalStreet Business @ 6:17 AM
What are fund managers Buying / Selling ?
Wednesday, July 16, 2008
In this extreme volatile market, fund managers are churning their portfolios at a rate which we have never seen before in the Indian market.
Here is an exclusive report which explains which stocks various fund managers [ABN Amro, BOB, HDFC, .etc] bought or sold [PDF] in the past month.
Published by DalalStreet Business @ 10:16 AM
Reliance Top 10 Stock Holdings + Bought + Sold
Friday, June 13, 2008
Here is how various fund managers at Reliance Mutual Fund churned their portfolio in May 2008. Ordered by Value.
Top 10 Stocks Bought by Reliance Mutual Fund:
Tata Consultancy Services Ltd
HCL Technologies Ltd
India Infoline Ltd
Biocon Ltd
Steel Authority of India Ltd
Lupin Ltd
CCL Products (India) Ltd
Zee Entertainment Enterprises Ltd
ACC Ltd
Shiv-Vani Oil & Gas Exploration Services Ltd
Top 10 Stocks Sold by Reliance Mutual Fund:
State Bank of India
Reliance Industries Ltd
Reliance Infrastructure Ltd
Oil & Natural Gas Corpn Ltd
Jaiprakash Associates Ltd
Tata Power Company Ltd
Larsen & Toubro Ltd
ICICI Bank Ltd
MphasiS Ltd
Punj Lloyd Ltd
Top-10 Holdings by Reliance Mutual Fund across various schemes:
Reliance Industries Ltd
Reliance Infrastructure Ltd
Divis Laboratories Ltd
Tata Steel Ltd
State Bank of India
Reliance Communication Ltd
ICICI Bank Ltd
Jaiprakash Associates Ltd
Maruti Suzuki India Ltd
Oil & Natural Gas Corpn Ltd
They are holding between 10-25% CASH in various equity schemes.
Published by DalalStreet Business @ 10:33 AM
HDFC Top 10 Holdings + Bought + Sold
Thursday, June 12, 2008
Are you wondering what HDFC fund managers bought and dumped in the month of May-2008 ? Here are the top 10 stocks by value they bought and dumped. Ordered by Value.
Top 10 stocks HDFC Mutual Fund bought in May-2008:
Zee News Ltd
Tata Steel Ltd
Dr Reddys Laboratories Ltd
Siemens Ltd
Titan Industries Ltd
Lupin Ltd
GlaxoSmithkline Consumer Healthcare Ltd
Satyam Computer Services Ltd
United Phosphorus Ltd
Container Corporation Of India Ltd
Top 10 stocks HDFC Mutual Fund Sold in May-2008:
Bharat Heavy Electricals Ltd
State Bank of India
Zee Entertainment Enterprises Ltd
ICICI Bank Ltd
Suzlon Energy Ltd
Reliance Industries Ltd
Crompton Greaves Ltd
Bank of Baroda
Larsen & Toubro Ltd
Oil & Natural Gas Corpn Ltd
Top 10 stocks held by HDFC Fund at the end of May-2008:
ICICI Bank Ltd
State Bank of India
ITC Ltd
Crompton Greaves Ltd
Larsen & Toubro Ltd
Dr Reddys Laboratories Ltd
Reliance Industries Ltd
United Phosphorus Ltd
Oil & Natural Gas Corpn Ltd
Divis Laboratories Ltd
Published by DalalStreet Business @ 10:24 AM
Top 5 AMCS - Asset management Companies
Tuesday, June 10, 2008
We decided to find out the top 5 Asset management Companies - AMCs based on two factors - Total Assets Under Management and Equity Assets Under Management as on May-31st, 2008. The latter is of more importance to our theme of investing.Top 5 AMCs based on Total Assets under management:
- Reliance Mutual Fund Rs 98,431 cr
- ICICI Prudential Mutual Fund Rs 59,094 cr
- HDFC Mutual Fund Rs 56,107 cr
- UTI Mutual Fund Rs 54,652 cr
- Birla Sun Life Mutual Fund Rs 41,442 cr
- Reliance Mutual Fund Rs 24,478 cr
- UTI Mutual Fund Rs 19,188 cr
- HDFC Mutual Fund Rs 16,881 cr
- SBI Mutual Fund Rs 14,661 cr
- Franklin Templeton Mutual Fund Rs 13,727 cr
Published by DalalStreet Business @ 10:12 AM
HDFC Fund Review - FY2008
Saturday, April 19, 2008
We have been recommending investing in HDFC Funds. It is time that we presented the performance review for FY-2008. As you all know about the correction that happened in Global market didn't spare Dalal Street as well :-)HDFC Equity Fund:
The fund has delivered 23.60% returns for investors since inception. However, SIP investors continue to make merry by fetching returns of 32.30% as on March-08.
HDFC Top 200 Fund:
This fund is rated 5 stars [*****] and is one of the best performing funds in India. Benchmarked against BSE 200, the fund has been consistently beating the benchmark delivering solid returns for investors. Top-200 fund has given returns of 27.35% since inception for original investors. While SIP investors have made 30.86%.
HDFC Tax Saver Fund:
This fund has also performed consistently delivering unbelievable returns of 35.48% for lump sum investors who invested in NFO and 38.99% for SIP investors. In addition to this, your investment would have qualified for Section 80CC Income Tax benefit.
HDFC Long Term Advantage Fund:
This fund is the youngest from the HDFC stable on which we have a recommendation. Lumpsum NFO investors made 36.65% while SIP investors made 39.27%. This fund qualifies for IT benefits under 80CC.
HSBC Equity Fund:
We are initiating coverage on HSBC Equity Fund with a SIP subscribe recommendation. We haver eviewed the performance of this fund for the past 5 years and fully satisfied by the performance and portfolio along with the process the fund house follows. [process is very important in the event of Turmoil in the markets]
HSBC Equity fund has delivered 52.09% returns since inception and SIP investors stand to gain by 42.93%. This is the youngest fund in our recommendation list.
Questions and Comments can be sent to feedback AT DalalStreet Dot Biz
Published by DalalStreet Business @ 11:43 PM
HSBC Emerging Markets Fund
Monday, February 18, 2008
With the Indian Government opening gates for Indian investors to invest in securities abroad, we have seen AMCs hitting the market with International Opportunities Fund, Emerging market Funds etc.HSBC Emerging Markets Fund (HEMF) is an open-ended scheme seeking to provide long-term capital growth by investing in emerging economies the world over. The fund would invest both within and outside India, in equity and equity related instruments, share classes and units/securities issued by overseas mutual funds or unit trusts. Outside India, the fund would focus on emerging economies such as Brazil, South Africa, China, Russia, etc.
Diversification across various emerging markets sounds like a great idea. However, you need to take the SIP route for maximum benefit and I am wondering how can you manage several SIPs ? If you can spare at least an additional Rs 3,000 / month, then we recommend you to go for it else, focus on existing SIPs.
NFO - Open. Closes on 25th February
Initial Min. Investment - Rs 10,000
SIP - Available and Recommended. Opt for Growth.
The fund is not for short-term nor medium-term investors with a horizon of less than 5 years.
Published by DalalStreet Business @ 11:37 AM
HDFC Funds Underperform over 1 Year Period
Monday, February 04, 2008
The markets maybe buoyant but our SIP investments have underperformed the markets in the past 6 months and 12 months period in the hands of HDFC Fund Managers [Prashant Jain, Chirag Setalvad and Vinay Kulkarni] .HDFC Equity Fund:
Mainly focused on Large Cap stocks. This fund has delivered returns of 53.25% Vs 62.08% [S&P CNX 500]. However the fund continues to beat the benchmark for period longer than 3 years.
HDFC Top 200 Fund:
Has some exposure to Midcaps but a strict no to smallcap.This fund has delivered returns of 54.10% against benchmark [BSE 200] 60.03%. The fund continues to beat the benchmark for period longer than 3 years. Both the funds are managed by Sr. Fund Manager Mr. Prashant Jain, almost since inception. The fund manager believes in sticking to highly liquid stocks. In the past we have seen him pick-up turnaround companies or pick new winners and stick to them to reap the bounty. However, in the past 12 months their has been no aggression from the fund managers side but we continue to believe his performance will beat the benchmark over a 3+ year period.
HDFC Long Term Advantage Fund:
This fund was launched in the bear phase in Indian market. This fund has also failed to beat the benchmark SENSEX over a 12 month period. It generated returns of 40.36% Vs 46.84. [One cannot compare this fund for just 12 months period because investor funds are locked-in by default for 3 years] However, over a 3 year period the fund has beaten its benchmark index. The fund qualifies for ELSS investment tax benefit under section 80 of the IT act.
HDFC Tax Saver Fund Growth:
This fund saw change of guard with Tushar Pradhan moving to AIG and Vinay Kulkarni taking the drivers seat. This fund has again failed to beat its benchmark S&P 500 over 12 month period. However, it continues to beat benchmark and create wealth over longer term.
Since we advise Investors to have a long term view, we need to take atleast a 3 year period under review before one can pull the plug.
Published by DalalStreet Business @ 12:03 PM
