HDFC Equity Fund

[gabbar.singh]

It is downgraded from 5 to 4 star rating at valueresearch. Should I hold or switch to Reliance Vision?

[johnbest]

Originally Posted by gabbar.singh

It is downgraded from 5 to 4 star rating at valueresearch. Should I hold or switch to Reliance Vision?

dear gabbar.singh

what if, say after 6 months, Reliance Vision get downgraded to 4 star?
Then you will shift to another and again another one..........so on hehe

let the fund manager have some time....to perform....say 3-6 months then
check the overall performance.....compare it with its benchmark....and then decide......

are you a MF advisor? trying to get more commission off the client?
If yes ....then its a bad practice..
If no .....then every 3-4 months you will be paying entry load...hahahaha

have a nice day
JB

[Vicky78]

well, hdfc equity has been underperforming for a while.

I think franklin prima plus is better than all the 5 star funds. It has fallen less during bear markets and has delivered above average results in bull runs. I guess nobody talks about prima plus these days as there is less commission on it.

[gabbar.singh]

At http://www.moneycontrol.com/mf/report_card/mf_meter.php I looked at HDFC Equity and found that their recommendation is to sell.

Do you think this fund has run out of steam?

[justsayraj]

Those recommendations are generated automatically by computer programs..which take certain parameters into consideration... some may result in wrong recommendations..like this..

This fund is still performing great... I

[gabbar.singh]

Originally Posted by justsayraj

Those recommendations are generated automatically by computer programs..which take certain parameters into consideration... some may result in wrong recommendations..like this..

This fund is still performing great... I

Thanx. They haven't made clear what parameters they have taken into account.

[Vicky78]

This fund has got an amazing 10 year and a good 5 year track record. But its recent performance in 2006 & 2007 has not been good. It was an average perfomer in 2006 and a below average performer in 2007.

However all of the best rating agencies like valueresearch, personalfn, citibank have placed HDFC Equity as their number one pick. IMO, it is a average fund and does not deserve the hype surrounding it. There are many more consistant perfomers available in the market.

BTW, moneycontrol's rating is not very good. Its mostly based on short term performances.

[Vicky78]

If you compare the returns of HDFC Equity against its benchmark for the past 2 years it in even worse.

S&P CNX- 500 has returned average anuallised 47% in the year 2006 & 2007 whereas the fund has returned an average annualised rate of 31.22%. Hence it has underperformed its benchmark by a wide margin.