LEARNINGS FROM HDFC EQUITY FUND PERFORMANCE
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LEARNINGS FROM HDFC EQUITY FUND PERFORMANCE

 
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Financial Advisor
See interview of Srikanth  Matrubai
The NAV of the fund did not cross Rs.10 for 4 full years!!!!Launched on 1st Jan 1995, it crossed its par value only on 19th Jan 1999 a full 48 months later!!

KEY DATA POINTS FROM HDFC EQUITY PERFORMANCE : 

 
As I analysed HDFC Equity fund's performance history....the following amazing points I noticed : 
 
1. The Fund which was launched in January 1, 1995 at Rs.10
Was quoting its NAV as follows: 
 
Year 1 (Jan1, 1996) - Rs.7.29
Year 2 (Jan1, 1997) - Rs.5.67
Year 3 (Jan1, 1998) - Rs.6.79
Year 4 (Jan1, 1999) - Rs.9.29
and the Fund crossed the physiological mark of Rs.10 NAV only on 19th Jan 1999, a full 4 years after its launch!!!!
And, surprise on Year 5 (Jan1, 2000) the Fund's NAV was Rs.24.91.....MORE THAN DOUBLE!!
2. Even for a SIP investor, the value of his investment would have been like this....
 
Till March 1998, (that is 39 sips)
Invested Amount = Rs.39, 000
Investment Value = Rs.38400/-
NEGATIVE!!!!
So, even the proponents of SIP would have got the stick
The Interesting part is, if the Investor had continued for just 1 more year
Then his 
Invested Amount = Rs.51, 000
Investment Value = Rs.86, 451...

MORE THAN DOUBLE!

Not only he would have gained profit, it would have been a good decent appreciation.
Now, if the investor had continued for one more year
Invested Amount = Rs.63, 000
Investment Value = Rs.1, 95,000
WHAT A TURNAROUND!!!
What many would have done is...they would have started in this fund as "Long Term", bought it in the Year 2 and SOLD (!) in year 4, after all your NAV went up from 5.67 to 9.29.
Even After 4 Years NAV Is 8.22,  then, yes, one definitely needs to rethink.
But You would have also noted that the NAV Has Increased From 6.68 to 8.22. It Shows Some Positive Changes In Fund.
Second, Third & Fourth, Year Fund Is Performing.

By the way, for your information, the NAV of HDFC EQUITY FUND  is today Rs.443 and the CAGR for those who have stayed invested since the NFO is 19.78% TAX FREE!!

 


This and more such learnings from HDFC EQUITY FUND'S PERFORMANCE.
Please and give your expert commentshttp://goodfundsadvisor.blogspot.in/2015/12/key-learning-from-hdfc-equity-funds.html

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