HDFC Equity Fund Vs HDFC Growth Opportunities Fund

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

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 (Erstwhile HDFC Large Cap Fund)

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.

HDFC Equity Fund Vs HDFC Growth Opportunities Fund

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.

Basics Section

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.

Performance Section

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.

Yearly Performance Section

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.

Other Details Section

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.

Growth of 10k Investments over the years