HDFC Mutual Funds Performance Review & Recommendation
We at DalalStreet.Biz have always believed in making Quality Money in the Long Run. Today, we’ll publish to the World DSB’s [DalalStreet.Biz] Rolling 10 Year Month on Month Performance Review for Mutual Funds which we have used internally to Track Clients’ Portfolio and make High Quality Sustainable Money for them.
If you visit any other Website they review performance of the fund between any two dates – since inception, Past 5 years, 10 years, etc However, we thought of it in a different way. Since we have been advising clients to invest a fixed sum monthly[ analogous to a salaried person saving monthly in Recurring Deposits, Post Office, provident Funds etc] what is the Internal Rate of Return [IRR] that we will earn for our clients. With this motive our Analytical Team began to Download Data of the funds that we have recommended since 1997 and evolved on the following Model.
What is DSB 10 Year Month on Month Performance Review for Mutual Funds Model?
The performance of the fund we recommend, has to be consistent in beating the benchmark it is compared with. How do we ascertain this ? Thus comes into picture the IRR, the fund has generated in Long Run, say 10 years. So in this model, on a rolling basis, we calculate the IRR for an investor on a monthly basis for a 120 Month Prior Period and henceforth will update on a monthly basis.
To Illustrate this with an example, the first value of 10 Year IRR for HDFC Equity Fund will be for investments between Jan-1997 to Dec-2006 on a monthly basis. The next Value will take into account the investment between Feb-1997 till Jan-2007 and so on. This Measure will also qualify as an additional yardstick to know when the Market Indices are Overheated and it is time to Book Profits.
DSB 10 Year MoM Rolling Performance Review using IRR on a Continued Basis Updated Monthly
[Common Wiki – on how to Interpret the Table]
- HDFC Equity Fund – Growth
- HDFC Top 200 Fund – Growth
- HDFC Prudence Fund – Growth
- HDFC Tax Saver Fund – Growth
- HDFC Long Term Advantage Fund – Growth
Further Research: Inventions and Innovative Business Models arrive out of Collaborative Research and Ideas. We are uploading the Raw Data Files that we used to process and arrive at the results summarized above. We have used an AMD EM64T Box running Windows Server and Perl v5.10.1 for generating our reports. [Experienced Mathematicians can get different Result Sets if the CPU and Compiler implementation of floating point are different than ours] If you are interested you can download the Raw Data Files[Equity, Top-200, Prudence, Tax Saver, Long Term Advantage] and vary the Algorithm and maybe come with something new ? Feel free to share it wish us – feedback At DalalStreet Dot Biz.