HDFC Capital Builder Fund: Healthy long-term track record

ET Wealth collaborates with Value Research to analyse top mutual funds. We examine the key fundamentals of the fund, its portfolio and performance to help you make an informed investment decision.

HOW HAS THE FUND PERFORMED?
With a 10-year return of 13.98%, the fund has outperformed both the category average (11.69%) and the benchmark return (8.66%).


Growth of Rs 10,000 vis-a-vis category and benchmark

Annualised performance (%)

The fund has performed well across time periods.

Yearly performance (%)

Barring last year, the fund has outperformed in recent years.

BASIC FACTS
DATE OF LAUNCH: 2 January 1994
CATEGORY: Equity
TYPE: Multi Cap
AVERAGE AUM: Rs 1,367.66 cr
BENCHMARK: Nifty 500 Index

WHAT IT COSTS
NAVS* GROWTH OPTION: Rs 235.17
DIVIDEND OPTION: Rs 28.65
MINIMUM INVESTMENT: Rs 5,000
MINIMUM SIP AMOUNT: Rs 500
EXPENSE RATIO^ (%): 2.61
EXIT LOAD: 1% for redemption within 365 days
*As on 21 Feb 2017
^As on 30 Sep 2016

FUND MANAGER: Chirag Setalvad
TENURE: 9 years and 9 months
Education: B.Sc and MBA

SHOULD YOU BUY?
This fund has outperformed its benchmark and peers fairly consistently over the years. While it has no market-cap bias, the fund takes a large-cap tilt like many of its peers. It also operates without a sector bias and combines growth and value approaches. The fund manager prefers companies with strong management, leadership position and operating efficiency. The fund’s portfolio is reasonably diversified, with most of its top picks being heavyweights from frontline indices. However, it is no index hugger and doesn’t shy from making a higher allocation to select stocks, relative to their weight in the index. A low portfolio turnover indicates a strict buy and hold approach. Although some peers in its category offer a better return profile, this fund is a proven bet for long-term investment.