With 8.1% of weightage in HDFC bank, PPFCF is betting heavily on HDFC bank for its next 5 yr return as they are reducing their exposure to ITC and Bajaj Holding which i think is the right strategy.
PPFCF would have had more than 8.1% exposure to HDFC bank but being a MF they cannot. They have kept 1.9% as cushion for any market crash scenario or they had already at 10% now after this 15% correction within a month. But retail investors have the gift of having unlimited exposure to a given stock.
we are at the peak of rate cycle. A minimum of 3 to a maximum of 6 rate cuts expected in HY2 of FY25. I always wanted to have big exposure to high quality company at lower valuation but it never happened in case of HDFC bank in the last decade except covid crash. But i had plenty of other options during that crash. Now when entire market is at peak valuation, i am glad to see HDFC bank at 14.7 PE which gave me the opportunity to increase stake throughout FY24. If return expectation is to beat nifty by nominal 3%, then HDFC bank may be right choice for next 5 yrs.
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