HDFC Mutual Fund schemes: Hold

Recommendation: Hold

Suresh Krishnamurthy

THE recently-launched mutual fund schemes of HDFC Mutual Fund disclosed their portfolio as at the end of September. HDFC Mutual Fund collected around Rs 600 crore when the fund's initial public offer closed in August. Of this, 60 per cent was in income funds, 25 per cent in growth, and 15 per cent in balanced funds.

HDFC Growth: The fund's net assets as at end-September was Rs 132.14 crore. The net current assets stood at negative 15.6 per cent. Excluding the borrowings, the fund had cash and cash equivalents of Rs 65 crore, accounting for 49.3 per cent.

The top holdings in the fund are NIIT, ITC, Britannia Industries, Hero Honda and Mastek. In terms of equity investments alone, around 43 per cent was invested in technology stocks while a marginally higher 44 per cent was invested in stocks of consumer goods companies. The rest was accounted by stocks of healthcare companies and a lone cyclical stock _ Concor.

Existing investors can stay invested. The net asset value of scheme is Rs 9.74 per unit.

HDFC Balanced Fund: The net assets of the fund as at end-September was Rs 119.72 crore. The net current assets stood at negative 9.3 per cent. Excluding the borrowings, the fund has cash and cash equivalents of Rs 62 crore accounting for 50.7 per cent.

Of the total investments, 59 per cent was in equities, 33 per cent in debt, and 8 per cent in commercial paper. The top equity investments are ITC, HLL, Hughes Software, Polaris Software and Infosys Technologies. Of the equity investments, the technology sector accounts for 33 per cent, consumer goods 32 per cent, healthcare 24 per cent, and cyclical stocks 11 per cent.

The equity investments in the balanced fund have been made with a relatively greater value-investing focus than in the Growth Fund. In the debt segment, investments were made in ICICI, GE Capital and Nestle. Investors can stay with the scheme, the NAV of which is Rs 9.89 per unit.