Mutual Fund Performance Review: HDFC Equity Fund

The performance of HDFC Equity fund is reviewed using the sliding NAV chart tool available at Value Research. MorningStar and thefundoo. also have similar tools. Naturally this is not a sophisticated way to review mutual fund performance. However, it is a simple, yet powerful way to gain insights about fund performance.
I have tried my hand at making a 7-minute video out of this. Hope it is watchable. If the chart appears too small, please use the full-screen option. Yes, I should made the VR window full screen. I wanted to get rid of an advt on the side. Apologies for this crude attempt.

I would like to reiterate that investors should evaluate fund performance only from the time that they started investing in the fund and not rely on star ratings. Performance depends on when we choose to analyze and over what period. Prashant Jain has always maintained that 3 or even 5 years is too short a time to expect returns from equity. I agree because data supports his stand. See: What Return Can I Expect From Equity Over the Long term? Part 1

You might say, that I am fixing the 7-year window (5-year window is also fine, suggest you try it with 5) with the benefit of hindsight. While this is true, the bigger issue is that investors are impatient and not willing to wait. Switching to a fund that is “currently doing well” is also done with the benefit of hindsight. Either way, there is no guarantee of performance.  I could be wrong, and you could be right. Only time will tell.

As for fund size, he keeps pointing out that it is still much smaller than the size of the market. While this is true, the large size seems to have affected the churn ratio of the fund: Mutual Fund Size vs. Performance: A Case Study. It is impossible to prove whether size has affected performance or not.

As mentioned in the video, this is a simple way of analysing performance consistency. One can use the Mutual Fund SIP Rolling Returns Calculator or the Multi-index Mutual Fund Rolling Returns Calculator  for deeper analysis. I will try and make a video of this.

Do let me know your feedback on the video.

Want to conduct a sales-free "basics of money management" session in your office?
I conduct free seminars to employees or societies. Only the very basics and getting-started steps are discussed (no scary math):For example: How to define financial goals, how to save tax with a clear goal in mind; How to use a credit card for maximum benefit; When to buy a house; How to start investing; where to invest; how to invest for and after retirement etc. depending on the audience. If you are interested, you can contact me: freefincal [at] Gmail [dot] com. I can do the talk via conferencing software, so there is no cost for your company. If you want me to travel, you need to cover my airfare (I live in Chennai)

Connect with us on social media


Do check out my books


You Can Be Rich Too with Goal-Based InvestingYou can be rich too with goal based investing

My first book is meant to help you ask the right questions, seek the right answers and since it comes with nine online calculators, you can also create customg solutions for your lifestye!Get it now.  It is also available in Kindle format.

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 want My second book is meant for young earners to get their basics right from day one! It will also help you travel to exotic places at low cost! Get it or gift it to a youngearner

The ultimate guide to travel by Pranav Surya

Travel-Training-Kit-Cover This is a deep dive analysis into vacation planning, finding cheap flights, budget accommodation, what to do when travelling, how travelling slowly is better financially and psychologically with links to the web pages and hand-holding at every step.  Get the pdf for ₹199 (instant download)

Create a "from start to finish" financial plan with this free robo advisory software template


Free Apps for your Android Phone

All calculators from our book, “You can be Rich Too” are now available on Google Play!
Install Financial Freedom App! (Google Play Store)
Install Freefincal Retirement Planner App! (Google Play Store)
Find out if you have enough to say "FU" to your employer (Google Play Store)

About Freefincal

Freefincal has open-source, comprehensive Excel spreadsheets, tools, analysis and unbiased, conflict of interest-free commentary on different aspects of personal finance and investing. If you find the content useful, please consider supporting us by (1) sharing our articles and (2) disabling ad-blockers for our site if you are using one. We do not accept sponsored posts, links or guest posts request from content writers and agencies.

Blog Comment Policy

Your thoughts are vital to the health of this blog and are the driving force behind the analysis and calculators that you see here. We welcome criticism and differing opinions. I will do my very best to respond to all comments asap. Please do not include hyperlinks or email ids in the comment body. Such comments will be moderated and I reserve the right to delete the entire comment or remove the links before approving them.