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 of over Rs. 4.8 Lakh crores (excluding domestic fund of funds) as of 30th June 2023.
HDFC Multi-Asset Fund
Investment Objective
The objective of the Scheme is to generate long-term capital appreciation/income by investing in a diversified portfolio of equity & equity-related instruments, debt & money market instruments, and gold-related instruments.
Investment Strategy
- Equity – The Fund follows a model whereby equity allocation is decided by factors such as TTM P/E, 1 Year Forward P/E, TTM PB, Earnings Yield/ G-Sec Yield, etc., with monthly rebalancing.
- Arbitrage – The Fund seeks to generate income through arbitrage opportunities. The arbitrage allocation ensures the fund is equity-oriented. Arbitrage allocation reduces the impact of equity drawdown.
- Debt – The Fund seeks to generate income by investing in debt securities based on credit quality, liquidity, interest rate, and outlook.
Portfolio Composition
The fund holds 54.07% equity, 13.29% debt, 13% commodities, 3.31% real estate, and 16.8% in Cash and cash equivalents. The significant sectoral exposure is to Financials, which account for over 16.68% of the equity portfolio. The top five sectors hold more than 34% of the equity portfolio.
Source: Value Research
Top 5 Holdings for HDFC Multi-Asset Fund
| Name | Weightage % |
| HDFC Gold ETF | 12.76% |
| HDFC Bank | 6.26% |
| ICICI Bank | 4.29% |
| Axis Bank | 4.2% |
| Bharti Airtel | 2.26% |
Source: Value Research
Fund Managers for HDFC Multi-Asset Fund
Currently, the HDFC Multi-Asset Fund is managed by the following fund managers.
- Mr Bhagyesh Kagalkar (Since 2nd February 2022): Collectively over 28 years of experience in Equity Research, investments, and Finance.
- Mr Srinivasan Ramamurthy (Since 13th January 2022): Collectively over 15 years of experience in equity research and fund management.
- Mr Anil Bamboli (Since 17th August 2005): Collectively over 28 years of experience in Equity Research, investments, and Finance
- Mr Arun Agarwal (Since 24 August 2020): Collectively over 23 years of experience in equity, debt, and derivative dealing, fund management, internal audit, and treasury operations.
- Mr Nirman Morakhia (Since 15th February 2023): Fund Manager and Dealer – Equities.
- Mr Priya Ranjan (Since 15th February 2023): Collectively, over 15 years of experience. Senior Equity Analyst and Fund Manager for Overseas Investments.
Who Should Invest in HDFC Multi-Asset Fund?
Investors looking to diversify their portfolio by gaining exposure to an actively managed portfolio across a variety of asset classes (like equity, gold, debt, etc.) under a single unified scheme may consider multi-asset allocation funds as a good option.
However, investors should remain invested long-term to witness wealth creation.
Past Performance of Regular Plan as of 31st July 2023.
| Full Name | 1Y | 3Y | 5Y | 10Y | Since Inception |
| HDFC Multi-Asset Fund (%) | 14 | 16.09 | 11.29 | 11.17 | 9.89 |
| Benchmark Returns (%) | 14.11 | 16.38 | 12.44 | 12.66 | NA |
| Additional Benchmark Returns (%) | 16.18 | 22.71 | 13.02 | 14.51 | 13.83 |
Conclusion
The HDFC Multi-Asset Fund has been in existence for nearly two decades. It provides an opportunity to invest across various asset classes with the benefit of true diversification.
So, investors looking to diversify their investments across various asset classes can consider this fund.
Disclaimer
This is not recommendation advice. All information in this blog is for educational purposes only.
