Time for some self praise today. We have been recommending HDFC Funds for investors since long time on here. HDFC Top 200, Equity , Prudence and Tax Saver NAVs are near their Jan-2008, peak when the Index was 21,000. This means Sr. Fund Manager and CIO – Prashant Jain has managed to beat the index by 23%. [NAVS are at new peak when SENSEX ~17,000, instead of hitting the target @ 21,000]
Reliance Growth Fund which we have recommended has been market performer as its all time High NAV is still 20% away from current levels. However, note that this fund takes some serious exposure to midcaps and will perform better in bull market than in a fall & subsequent rise. So stay invested.
Mutual Funds Under-perform Individual Stocks:
Some stocks like Hindalco, Bank of Baroda, Reliance Capital, EIL, Sesa Goa, etc have yielded a RoI of more than 200% in the last 10 months while our recommended mutual funds have yielded around 100%. This is because Fund Managers can’t take too much risk but they would have ridden some of these stocks which are less risky. Finally, for small investors without large corpus and having regular stream of income, SIP based disciplined investment is the best opportunity to create wealth and hence we advise them to stay invested in Mutual Funds.