Fincash » HDFC Equity Fund Vs HDFC Growth Opportunities Fund
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HDFC Equity Fund and HDFC Growth Opportunities Fund both the schemes are managed by the same fund house, that is, HDFC Mutual Fund. In addition, both the schemes belong to the same category of large-cap Equity Funds. In simple terms, Large cap funds are the Mutual Fund schemes whose corpus is invested in shares of companies having a Market capitalization above INR 10,000 Crores. These companies are considered to be huge in size, market capitalization, and human resources. Large-cap schemes do provide a stable return and growth on a yearly Basis as they invest in huge businesses. Even when the economic situation is not good, these share prices of these companies do not fluctuate much. Though both HDFC Equity Fund and HDFC Growth Opportunities Fund belong to the same category they differ on account of numerous parameters. So, let’s understand these differences through this article.
HDFC Equity Fund is offered by HDFC Mutual Fund under the large-cap category of equity fund. This scheme was incepted on January 01, 1995, and its objective is to Capital appreciation. HDFC Equity Fund is suitable for individuals seeking for capital appreciation over long-term by Investing in equity and equity-related instruments of large-cap companies. HDFC Equity Fund uses Nifty 500 as its benchmark index and NIFTY 50 as its additional benchmark index to construct its Portfolio. This scheme is jointly managed by Mr. Rakesh Vyas and Mr. Prashant Jain. As on March 31, 2018, some of the top constituents of HDFC Equity Fund include State Bank of India, ICICI Bank Limited, Reliance Industries Limited, and NTPC Limited.
HDFC Growth Opportunities Fund (earlier known as HDFC Large Cap Fund) aims to achieve capital appreciation in the long-term by mainly investing the fund money in stocks of large-cap companies. The inception date of this scheme is February 18, 1994. This scheme uses NIFTY 50 Index as its benchmark and S&P BSE Sensex as its additional benchmark to build its portfolio. The fund managers managing HDFC Growth Opportunities Fund are Mr. Rakesh Vyas and Mr. Vinay R. Kulkarni. As per the Asset Allocation of HDFC Growth Opportunities Fund, it invests around 80-100% of its pooled money in equity and equity-related instruments of large-cap companies while the remaining portion in fixed Income and money market instruments. Larsen & Toubro Limited, Axis Bank Limited, Bharat Petroleum Corporation Limited, and Mahindra & Mahindra Limited are some of the top constituents of HDFC Growth Opportunities Fund’s portfolio as on March 31, 2018.
The comparison of HDFC Equity Fund Vs HDFC Growth Opportunities Fund is divided into four sections, namely, basics section, performance section, yearly performance section, and other details section which are explained below as follows.
It is the first section in the comparison of both the schemes. The parameters forming part of the basics section include current NAV, scheme category, and Fincash rating. With respect to the scheme category, it can be said that both the schemes belong to the same category of Equity Large Cap. The comparison of current NAV shows that there is a significant difference between the NAV of both the schemes. As on April 24, 2018, the NAV of HDFC Equity Fund was approximately INR 616; while of HDFC Growth Opportunities Fund was around INR 108. With respect to Fincash Rating, it can be said that HDFC Equity Fund is rated as 3-Star and HDFC Growth Opportunities Fund is rated as 2-Star. The comparison of basics section is summarized in the table given below.
Parameters Basics NAV Net Assets (Cr) Launch Date Rating Category Sub Cat. Category Rank Risk Expense Ratio Sharpe Ratio Information Ratio Alpha Ratio Benchmark Exit Load HDFC Equity Fund
Growth
Fund Details ₹1,593.73 ↑ 3.11 (0.20 %) ₹49,657 on 29 Feb 24 1 Jan 95 ☆☆☆ Equity Multi Cap 34 Moderately High 1.7 2.95 1.05 4.45 Not Available 0-1 Years (1%),1 Years and above(NIL) HDFC Growth Opportunities Fund
Growth
Fund Details ₹285.588 ↑ 1.00 (0.35 %) ₹16,757 on 29 Feb 24 18 Feb 94 ☆☆ Equity Large & Mid Cap 63 Moderately High 2.01 2.88 0.95 1.26 Not Available 0-1 Years (1%),1 Years and above(NIL)
It is the second section in the comparison that analyses the difference in the CAGR or Compounded Annual Growth Rate returns generated by both the schemes at different time intervals. These time intervals include 3 Month Return, 6 Month Return, 5 Year Return, and Return since Inception. The comparison of CAGR returns shows that in many instances, HDFC Equity Fund has done better as compared to HDFC Growth Opportunities Fund. The summary comparison of the performance section is tabulated as follows.
Parameters Performance 1 Month 3 Month 6 Month 1 Year 3 Year 5 Year Since launch HDFC Equity Fund
Growth
Fund Details -0.6% 6.1% 19.6% 44.9% 26.5% 19% 18.9% HDFC Growth Opportunities Fund
Growth
Fund Details -1.4% 4.5% 17.2% 51.8% 25.6% 20.2% 12.9%
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Being the third section, it compares the absolute returns generated by both the schemes for a particular year. The comparison of absolute returns reveals that for certain years, HDFC Equity Fund leads the race, while in other HDFC Growth Opportunities Fund leads the race. The table given below summarizes the comparison of yearly performance section.
Parameters Yearly Performance 2023 2022 2021 2020 2019 HDFC Equity Fund
Growth
Fund Details 30.6% 18.3% 36.2% 6.4% 6.8% HDFC Growth Opportunities Fund
Growth
Fund Details 37.7% 8.2% 43.1% 11.4% 6.6%
AUM, minimum SIP investment, and minimum lumpsum investment are some of the comparable parameters that form part of the other details section. The minimum SIP and lumpsum amount for both the schemes is same. The minimum SIP amount for both the schemes is INR 500 while the lumpsum amount for both the schemes is INR 5,000. However, the comparison of AUM shows a significant difference between both the schemes. As on March 31, 2018, the AUM of HDFC Equity Fund is approximately INR 20,381 Crores while of HDFC Growth Opportunities Fund is nearly INR 1,225 Crores. The comparison of the other details section is summarized in the table given below.
Parameters Other Details Min SIP Investment Min Investment Fund Manager HDFC Equity Fund
Growth
Fund Details ₹300 ₹5,000 Roshi Jain - 1.59 Yr. HDFC Growth Opportunities Fund
Growth
Fund Details ₹300 ₹5,000 Gopal Agrawal - 3.63 Yr.
HDFC Equity Fund
Growth
Fund Details Growth of 10,000 investment over the years.
Date Value 28 Feb 19 ₹10,000 29 Feb 20 ₹9,859 28 Feb 21 ₹13,161 28 Feb 22 ₹15,739 28 Feb 23 ₹18,098 29 Feb 24 ₹25,764 HDFC Growth Opportunities Fund
Growth
Fund Details Growth of 10,000 investment over the years.
Date Value 28 Feb 19 ₹10,000 29 Feb 20 ₹10,265 28 Feb 21 ₹13,962 28 Feb 22 ₹16,933 28 Feb 23 ₹18,406 29 Feb 24 ₹27,413
HDFC Equity Fund
Growth
Fund Details Asset Allocation
Asset Class Value Cash 8.29% Equity 89.23% Debt 2.48% Equity Sector Allocation
Sector Value Financial Services 35.93% Health Care 12.58% Technology 9.5% Industrials 8.92% Consumer Cyclical 6.46% Utility 5.11% Communication Services 5.01% Real Estate 3.73% Energy 1.73% Consumer Defensive 0.26% Top Securities Holdings / Portfolio
Name Holding Value Quantity ICICI Bank Ltd (Financial Services)
Equity, Since 31 Oct 09 | ICICIBANK9% ₹4,524 Cr 44,000,000
↑ 1,400,000 HDFC Bank Ltd (Financial Services)
Equity, Since 31 Jul 13 | HDFCBANK9% ₹4,417 Cr 30,200,000
↑ 4,900,000 Cipla Ltd (Healthcare)
Equity, Since 30 Sep 12 | 5000875% ₹2,567 Cr 19,000,000 Hindustan Aeronautics Ltd Ordinary Shares (Industrials)
Equity, Since 31 Aug 20 | HAL5% ₹2,460 Cr 8,200,000
↓ -200,000 HCL Technologies Ltd (Technology)
Equity, Since 30 Sep 20 | HCLTECH5% ₹2,396 Cr 15,200,000
↓ -500,000 State Bank of India (Financial Services)
Equity, Since 31 Jan 03 | SBIN5% ₹2,306 Cr 36,000,000 Axis Bank Ltd (Financial Services)
Equity, Since 31 Oct 17 | 5322154% ₹2,136 Cr 20,000,000
↑ 4,000,000 Bharti Airtel Ltd (Communication Services)
Equity, Since 31 Aug 20 | BHARTIARTL4% ₹2,107 Cr 18,000,000
↓ -1,000,000 Apollo Hospitals Enterprise Ltd (Healthcare)
Equity, Since 30 Sep 22 | APOLLOHOSP4% ₹2,037 Cr 3,207,166 SBI Life Insurance Company Limited (Financial Services)
Equity, Since 31 Mar 21 | SBILIFE4% ₹1,962 Cr 14,000,000 HDFC Growth Opportunities Fund
Growth
Fund Details Asset Allocation
Asset Class Value Cash 2.71% Equity 96.77% Debt 0.52% Equity Sector Allocation
Sector Value Financial Services 29.95% Consumer Cyclical 11.91% Industrials 11.28% Technology 10.23% Health Care 9.5% Basic Materials 7.36% Utility 4.25% Energy 4.13% Consumer Defensive 3.15% Communication Services 3% Real Estate 2.01% Top Securities Holdings / Portfolio
Name Holding Value Quantity HDFC Bank Ltd (Financial Services)
Equity, Since 31 Jan 03 | HDFCBANK4% ₹678 Cr 4,632,397 ICICI Bank Ltd (Financial Services)
Equity, Since 31 Aug 12 | ICICIBANK4% ₹582 Cr 5,663,173 Infosys Ltd (Technology)
Equity, Since 30 Jun 04 | INFY2% ₹337 Cr 2,030,379 Power Finance Corp Ltd (Financial Services)
Equity, Since 31 Mar 20 | 5328102% ₹270 Cr 6,100,000 State Bank of India (Financial Services)
Equity, Since 30 Jun 14 | SBIN2% ₹270 Cr 4,210,091 Reliance Industries Ltd (Energy)
Equity, Since 31 May 07 | RELIANCE2% ₹261 Cr 913,093 Larsen & Toubro Ltd (Industrials)
Equity, Since 31 Oct 07 | LT2% ₹254 Cr 730,535 Axis Bank Ltd (Financial Services)
Equity, Since 30 Sep 22 | 5322152% ₹251 Cr 2,350,000 NTPC Ltd (Utilities)
Equity, Since 31 Dec 16 | 5325551% ₹221 Cr 6,964,270 Mphasis Ltd (Technology)
Equity, Since 31 Oct 21 | 5262991% ₹221 Cr 850,734
Therefore, with the help of above-mentioned pointers, it can be said that there are numerous differences between both the schemes. As a consequence, individuals should understand a scheme thoroughly before investing money in it. They should check whether their scheme matches their investment criteria or not. If required, individuals can also consult the opinion of a financial consultant. This will help individuals to attain their objectives on time and ensure the safety of their capital.