HDFC Asset Management Company Ltd. (HDFC AMC) is one of India’s largest mutual fund companies. It is among one of the most profitable asset management companies (AMC) in the country.
The company manages assets worth Rs. 4,49,766.281 crores (excluding domestic fund of funds) as of 31st March 2023.
Let us talk about the consumer product – HDFC Multi Cap Fund.
HDFC Multi Cap Fund
Investment Objective
The scheme’s investment objective is to generate long-term capital appreciation by investing in equity and equity-related securities of large-cap, mid-cap, and small-cap companies.
Investment Strategy
The fund manager follows a mix of top-down and bottom-up approaches to stock selection. The strategy is to invest in companies that are leaders or are gaining market share due to superior execution, scale, better adoption of technology, etc.
Portfolio Composition
The fund holds 98.67% equity across large-cap, mid-cap, and small-cap stocks and 1.33% in Cash and cash equivalents.
The significant sectoral exposure is Banks, which account for over 15% of the portfolio. The top five sectors hold more than 40% of the portfolio.
Source: Value Research
Top 5 Holdings for Multi Cap Fund
| Name | Weightage % |
| ICICI Bank Ltd. | 4.27 |
| HDFC Bank Ltd. | 3.94 |
| Infosys Ltd. | 2.51 |
| Reliance Industries Ltd. | 2.45 |
| Apar Industries Limited | 2.39 |
Source: Value Research
Fund Managers for HDFC Multi Cap Fund
- Mr. Gopal Agrawal (Since 10th December 2021)– Fund Manager – Collectively over 17 years of experience in Fund Management and two years in Equity Research
- Mr. Priya Rajan (Since 01st May 2022) – Senior Equity Analyst and Fund Manager for overseas Investments – Collectively over 15 years of experience.
Who Should Invest in HDFC Multi Cap Fund?
Investors looking to invest in an equity portfolio with a broad representation of sectors across market cap can consider this fund. However, investors should remain invested long-term to witness wealth creation.
Why Invest in this Fund?
- Multi-cap provides balanced exposure to all sizes of company stocks which makes them more diverse.
- As per the data released by AMFI for Jan-Mar. 23 quarter, HDFC AMC is the third largest AMC in India.
Time Horizon
- One should look at investing for a minimum of three years or more.
- Investment through Systematic Investment Plan (SIP) may help in tackling the volatility of the broader equity market.
Conclusion
The HDFC Multi Cap Fund was launched on 10th December 2021 and delivered over 25% return in the last year compared to 13.74% of S&P BSE 500 TRI in the same duration as on 11th May 2023.
However, we must monitor the fund’s performance over the long term. Investors need to remain invested for the long term to witness wealth creation.
Disclaimer
This is not recommendation advice. All information in this blog is for educational purposes only.
