HDFC Equity Fund (G) Outperforms The Category Average Over Most Of The Time Periods

Background: HDFC Assets Management Company is sponsored by Housing Development Finance Corporation Limited (HDFC) and Standard Life Investment Ltd. HDFC incorporated in 1977 as the first specialized housing finance institution in India. HDFC AMC was incorporated on 10 December 1999, and today manages assets worth Rs.41333.4 crore at the end of September 2007.

HDFC Equity Fund (G) an open-ended equity-Diversified scheme launched in December 1994.The scheme aims at providing capital appreciation through investments predominantly in equity-oriented securities. The minimum investment amount is Rs.5000 and in multiples of Rs.100 thereafter. The unit NAV of the scheme was Rs.208.16 as on 30 October 2007.

Portfolio: The total net assets of the scheme increased by Rs.271.64 crore to Rs.4927.99 crore in September 2007.

HDFC Equity Fund (G) took fresh exposure to three stocks in September 2007. The scheme has purchased 8.49 lakh units (1.72%) of Maruti Suzuki India, 2.98 lakh units (0.60%) of Asian Paints and 11.32 lakh units (0.12%) of Power Grid Corporation of India in September 2007.

The scheme completely exited Reliance Petroleum by selling 50.00 lakh units (1.24%) and Puravankara Projects by 6.51 lakh units (0.53%) in September 2007.

Sector-wise, the scheme took fresh exposure to Automobiles - Passenger Cars at 1.72% and Paints / Varnishes at 0.60% in September 2007.

Sector-wise, the scheme does not exit completely from any sector in September 2007.

The scheme had highest exposure to Reliance Industries with 13.05 lakh units (6.09% of portfolio size) followed by Crompton Greaves with 87.50 lakh units (5.94%), State Bank of India with 13.50 lakh units (5.33%) and Oil & Natural Gas Corpn with 25.25 lakh units (4.91%) among others in September 2007.

It reduced exposure in Larsen & Toubro by selling 2.00 lakh units to 6.00 lakh units (by 1.02%), Punj Lloyd by selling 17.35 lakh units to 27.30 lakh units (0.96%), Infosys Technologies by selling 2.00 lakh units to 5.00 lakh units (0.87%) among others in September 2007.

Sector-wise, the scheme had highest exposure to Electric Equipment at 14.02% (from 13.69% in August 2007), followed by Banks - Public Sector at 8.64% (7.52%), Refineries at 8.45% (8.95%) among others in September 2007.

Sector wise, the scheme had reduced exposure Construction to 1.49% (by 46.42%), Engineering - Turnkey Services to 1.02% (by 22.97%), Computers - Software - Large to 0.87% (by 31.18%) among others in September 2007.

Performance: The scheme outperformed the category average over most of the time periods. It has underperformed the Sensex over all time periods.

Over three-month period ended as on 30 October 2007, the scheme posted 23.83% returns outperforming the category average of 23.66%. It underperformed the Sensex during the same period.