I want to invest in HDFC Top 200 for the next 25 years. But this fund has a very big corpus now, which is only going up further with each passing year. Do you think this could be a problem in the future for fund performance?
Darshana Patel, Mumbai
HDFC Top 200 is a top performing fund. And, though your concerns are valid, there is no study that proves under performance in funds that have growing asset size or those with small asset size are better performers. What counts with fund performance is the ability of the fund manager to deploy funds within specified risk limits to generate growth. We recommend investors to, whatever be the fund size, track the performance of the fund so that they can judge the performance of a fund depending on their own risk tolerance, besides the fund’s performance when compared to its peers and benchmark. You can invest in HDFC Top 200 keeping these guidelines in mind.
