HDFC TOP 200 Fund is a large-cap focused fund, which has an impressive long term track record, struggled for a lengthy stretch of time until a few years ago, when its performance started improving.

But the fund is yet to regain its past profile. The fund manager continues to back his high-conviction bets in the banking and financial services sector to the hilt. The portfolio size has been pruned slightly com pared to two years ago, but retains its aggression with large positions in the top picks. It is prone to higher volatility in returns with a tendency to capture market upside much better than peers, but also take a larger hit during downturns.

HDFC TOP 200 Fund is a good offering for investors who are comfortable with a higher degree of volatility and patience to ride out entire market cycles.