HDFC Children’s Gift Fund Performance Review

Published: January 9, 2023 at 6:00 am

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.

Market cap allocation history of HDFC Children's Gift Fund
Market cap allocation history of HDFC Children’s Gift Fund

The asset type history is shown below.

Asset type allocation history of HDFC Children's Gift Fund
Asset type allocation history of HDFC Children’s Gift Fund

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.


🔥Enjoy massive discounts on our courses and robo-advisory tool! 🔥
Get free money management solutions delivered to your mailbox! Subscribe to get posts via email! (Subscribers get exclusive discounts!)
 
New Tool! => Track your mutual funds and stocks investments with this Google Sheet!

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%.

MetricCrisil6535Nifty 100 TRI
No of rolling return entries Index (1 Year)21942180
No of rolling return entries Fund (1 year)21942180
No of times fund has outperformed the index (1 year)16011361
rolling return outperformance Consistency Score (1 year)73%62%
No of rolling return entries Index (2 Years)19481934
No of rolling return entries Fund (2 years)19481934
No of times the fund has outperformed the index (2 years)14641182
rolling return outperformance Consistency Score (2 years)75%61%
No of rolling return entries Index (3 Years)16991694
No of rolling return entries Fund (3 years)16991694
No of times the fund has outperformed the index (3 years)13821097
rolling return outperformance Consistency Score (3 years)81%65%
No of rolling return entries Index (4 Years)14551455
No of rolling return entries Fund (4 years)14551455
No of times the fund has outperformed the index (4 years)1303978
rolling return outperformance Consistency Score (4 years)90%67%
No of rolling return entries Index (5 Years)12101210
No of rolling return entries Fund (5 years)12101210
No of times the fund has outperformed the index (5 years)1110852
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 upThis is a measure of reward. It is computed from rolling upside capture data (see link below).

MetricCrisil6535Nifty 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 downThis is a measure of risk protection. It is computed from rolling downside capture data. Read more: An introduction to Downside and Upside Capture Ratios.

MetricCrisil6535Nifty 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).

Do share this article with your friends using the buttons below.

🔥Enjoy massive discounts on our courses and robo-advisory tool! 🔥
Use our Robo-advisory Excel Tool for a start-to-finish financial plan! More than 1000 investors and advisors use this!
  • Follow us on Google News.
  • Do you have a comment about the above article? Reach out to us on Twitter: @freefincal or @pattufreefincal
  • Join our YouTube Community and explore more than 1000 videos!
  • Have a question? Subscribe to our newsletter with this form.
  • 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.

Get free money management solutions delivered to your mailbox! Subscribe to get posts via email! (Subscribers get exclusive discounts!)
 
Explore the site! Search among our 2000+ articles for information and insight!

About The Author

Pattabiraman editor freefincalDr 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 nine years of experience publishing news analysis, research and financial product development. Connect with him via Twitter or 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 for 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 3000 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 what 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 you 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!
Both boy and girl version covers of Chinchu gets a superpower
Both boy and girl version covers of Chinchu gets a superpower.
Most investor problems can be traced to a lack of informed decision-making. We have all made bad decisions and money mistakes when we started earning and spent years undoing these mistakes. Why should our children go through the same pain? What is this book about? As parents, what would it be if we had to groom one ability in our children that is key not only to money management and investing but to any aspect of life? My answer: Sound Decision Making. So in this book, we meet Chinchu, who is about to turn 10. What he wants for his birthday and how his parents plan for it and teach him several key ideas of decision making and money management is the narrative. What readers say!
Feedback from a young reader after reading Chinchu gets a Superpower (small version)
Feedback from a young reader after reading Chinchu gets a Superpower!
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 for those interested in getting side income via content writing. It is available at a 50% discount for Rs. 500 only!
Want to check if the market is overvalued or undervalued? Use our market valuation tool (it will work with any index!), or you buy the new 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 from credible and knowledgeable sources before publication. Freefincal does not publish any paid articles, promotions, PR, satire or opinions without data. All opinions presented will only 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
Our publications

You Can Be Rich Too with Goal-Based Investing

You can be rich too with goal based investingPublished 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 Gamechanger: Forget Start-ups, Join Corporate and Still Live the Rich Life you wantThis 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

Travel-Training-Kit-Cover-new This is an in-depth dive analysis 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)