This edition of the fund performance report looks at the HDFC Children’s Gift Fund. Launched in Mar 2001, the fund has an AUM of over 6,000 Crores. In Oct 2017, HDFC MF merged HDFC Children’s Gift Fund Savings Plan into HDFC Children’s Gift Fund Investment Plan and then renamed the resulting fund as HDFC Children’s Gift Fund. This is an open-ended fund for investment for children having a lock-in for at least five years or till the child becomes a major. (whichever is earlier).
Disclaimer: Fund performance reports present return and risk analysis of a fund with representative benchmarks and not investment recommendations. It must be expressly understood that the data below reflect only past performance and is in no way an indication of future performance. Our investment recommendations are Handpicked List of Mutual Funds (PlumbLine).
As one can see below, the fund dabbles in quite a few small cap stocks but holds a steady 40% large cap allocation.
The asset type history is shown below.
We find out how consistently the HDFC Children’s Gift Fund has performed wrt Crisil 65% Equity 35% Debt index and Nifty 100 TRI. We will use three metrics to analyze performance consistency versus benchmarks. Analysis such as this can be found for 350+ equity funds in our monthly equity mutual fund screener.
Join 32,000+ readers and get free money management solutions delivered to your inbox! Subscribe to get posts via email! (Link takes you to our email sign-up form)
🔥Enjoy massive discounts on our robo-advisory tool & courses! 🔥
1 Rolling return outperformance consistency: the fund returns are compared with category benchmark returns over every possible 1Y, 2Y, 3Y,4Y, and 5Y period. Higher the outperformance consistency, the better. Suppose 876 fund returns were compared with 876 benchmark returns, and the fund has beaten the benchmark 675 times. The consistency score will be 675/876 ~ 77%.
| Metric | Crisil6535 | Nifty 100 TRI |
| No of rolling return entries Index (1 Year) | 2194 | 2180 |
| No of rolling return entries Fund (1 year) | 2194 | 2180 |
| No of times fund has outperformed the index (1 year) | 1601 | 1361 |
| rolling return outperformance Consistency Score (1 year) | 73% | 62% |
| No of rolling return entries Index (2 Years) | 1948 | 1934 |
| No of rolling return entries Fund (2 years) | 1948 | 1934 |
| No of times the fund has outperformed the index (2 years) | 1464 | 1182 |
| rolling return outperformance Consistency Score (2 years) | 75% | 61% |
| No of rolling return entries Index (3 Years) | 1699 | 1694 |
| No of rolling return entries Fund (3 years) | 1699 | 1694 |
| No of times the fund has outperformed the index (3 years) | 1382 | 1097 |
| rolling return outperformance Consistency Score (3 years) | 81% | 65% |
| No of rolling return entries Index (4 Years) | 1455 | 1455 |
| No of rolling return entries Fund (4 years) | 1455 | 1455 |
| No of times the fund has outperformed the index (4 years) | 1303 | 978 |
| rolling return outperformance Consistency Score (4 years) | 90% | 67% |
| No of rolling return entries Index (5 Years) | 1210 | 1210 |
| No of rolling return entries Fund (5 years) | 1210 | 1210 |
| No of times the fund has outperformed the index (5 years) | 1110 | 852 |
| rolling return outperformance Consistency Score (5 years) | 92% | 70% |
That is a fairly reasonable and consistent outperformance wrt both indices.
2 Upside performance consistency over every possible 1Y,2Y,3Y,4Y, 5Y: Higher the better. A score of 70% means, 7 out of 10 times, the Fund performed better than the category benchmark when the benchmark was moving up. This is a measure of reward. It is computed from rolling upside capture data (see link below).
| Metric | Crisil6535 | Nifty 100 TRI |
| upside performance consistency (1 year) | 81% | 3% |
| upside performance consistency (2 years) | 92% | 0% |
| upside performance consistency (3 years) | 99% | 0% |
| upside performance consistency (4 years) | 100% | 0% |
| upside performance consistency (5 years) | 100% | 0% |
HDFC Children’s Gift Fund tends to better the Crisil index when it moves up.
3 Downside performance consistency over every possible 1Y, 2Y, 3Y,4Y, and 5Y. Higher, the better. A score of 60% means 6 out of 10 times; the Fund performed better than the category benchmark when the benchmark was moving down. This is a measure of risk protection. It is computed from rolling downside capture data. Read more: An introduction to Downside and Upside Capture Ratios.
| Metric | Crisil6535 | Nifty 100 TRI |
| downside protection consistency (1 years) | 38% | 100% |
| downside protection consistency (2 years) | 34% | 100% |
| downside protection consistency (3 years) | 26% | 100% |
| downside protection consistency (4 years) | 32% | 100% |
| downside protection consistency (5 years) | 28% | 100% |
The nos wrt Nifty 100 TRI does not count as HDFC Children’s Gift Fund is a hybrid fund. It is one of the rare funds with good upside performance consistency and poor downside protection consistency. So this may frustrate investors when the markets are falling.
In summary, HDFC Children’s Gift Fund is a fairly consistent performer, but it seems to do better when the market is moving up rather than down. So investors will have to be wary of this as it can be frustrating. That said, it is a good buy for those who wish to stay invested the long-term and do not mind the lock-in conditions (see opening para).
🔥Enjoy massive discounts on our courses, robo-advisory tool and exclusive investor circle! 🔥& join our community of 7000+ users!
Use our Robo-advisory Tool for a start-to-finish financial plan! ⇐ More than 2,500 investors and advisors use this!
Track your mutual funds and stock investments with this Google Sheet!
We also publish monthly equity mutual funds, debt and hybrid mutual funds, index funds and ETF screeners and momentum, low-volatility stock screeners.
- Do you have a comment about the above article? Reach out to us on Twitter: @freefincal or @pattufreefincal
- Have a question? Subscribe to our newsletter using the form below.
- Hit 'reply' to any email from us! We do not offer personalized investment advice. We can write a detailed article without mentioning your name if you have a generic question.
Join 32,000+ readers and get free money management solutions delivered to your inbox! Subscribe to get posts via email! (Link takes you to our email sign-up form)
About The Author
Dr M. Pattabiraman(PhD) is the founder, managing editor and primary author of freefincal. He is an associate professor at the Indian Institute of Technology, Madras. He has over ten years of experience publishing news analysis, research and financial product development. Connect with him via Twitter(X), Linkedin, or YouTube. Pattabiraman has co-authored three print books: (1) You can be rich too with goal-based investing (CNBC TV18) for DIY investors. (2) Gamechanger for young earners. (3) Chinchu Gets a Superpower! for kids. He has also written seven other free e-books on various money management topics. He is a patron and co-founder of “Fee-only India,” an organisation promoting unbiased, commission-free investment advice.Our flagship course! Learn to manage your portfolio like a pro to achieve your goals regardless of market conditions! ⇐ More than 3,000 investors and advisors are part of our exclusive community! Get clarity on how to plan for your goals and achieve the necessary corpus no matter the market condition is!! Watch the first lecture for free! One-time payment! No recurring fees! Life-long access to videos! Reduce fear, uncertainty and doubt while investing! Learn how to plan for your goals before and after retirement with confidence.
Our new course! Increase your income by getting people to pay for your skills! ⇐ More than 700 salaried employees, entrepreneurs and financial advisors are part of our exclusive community! Learn how to get people to pay for your skills! Whether you are a professional or small business owner who wants more clients via online visibility or a salaried person wanting a side income or passive income, we will show you how to achieve this by showcasing your skills and building a community that trusts and pays you! (watch 1st lecture for free). One-time payment! No recurring fees! Life-long access to videos!
Our new book for kids: “Chinchu Gets a Superpower!” is now available!
Must-read book even for adults! This is something that every parent should teach their kids right from their young age. The importance of money management and decision making based on their wants and needs. Very nicely written in simple terms. - Arun.Buy the book: Chinchu gets a superpower for your child!
How to profit from content writing: Our new ebook is for those interested in getting side income via content writing. It is available at a 50% discount for Rs. 500 only!
Do you want to check if the market is overvalued or undervalued? Use our market valuation tool (it will work with any index!), or get the Tactical Buy/Sell timing tool!
We publish monthly mutual fund screeners and momentum, low-volatility stock screeners.
About freefincal & its content policy. Freefincal is a News Media Organization dedicated to providing original analysis, reports, reviews and insights on mutual funds, stocks, investing, retirement and personal finance developments. We do so without conflict of interest and bias. Follow us on Google News. Freefincal serves more than three million readers a year (5 million page views) with articles based only on factual information and detailed analysis by its authors. All statements made will be verified with credible and knowledgeable sources before publication. Freefincal does not publish paid articles, promotions, PR, satire or opinions without data. All opinions will be inferences backed by verifiable, reproducible evidence/data. Contact information: letters {at} freefincal {dot} com (sponsored posts or paid collaborations will not be entertained)
Connect with us on social media
- Twitter @freefincal
- Subscribe to our YouTube Videos
- Posts feed via Feedburner.
Our publications
You Can Be Rich Too with Goal-Based Investing
Published by CNBC TV18, this book is meant to help you ask the right questions and seek the correct answers, and since it comes with nine online calculators, you can also create custom solutions for your lifestyle! Get it now.Gamechanger: Forget Startups, Join Corporate & Still Live the Rich Life You Want
This book is meant for young earners to get their basics right from day one! It will also help you travel to exotic places at a low cost! Get it or gift it to a young earner.Your Ultimate Guide to Travel
This is an in-depth dive into vacation planning, finding cheap flights, budget accommodation, what to do when travelling, and how travelling slowly is better financially and psychologically, with links to the web pages and hand-holding at every step. Get the pdf for Rs 300 (instant download)