HDFC Flexi Cap Fund
Incorporated on December 10, 1999, HDFC Asset Management Company Ltd. is among India’s most popular fund houses.
HDFC Mutual Fund launched its first scheme in July 2000, and ever since it has been ambitious about offering a stable performance of funds across all the variants of schemes it offers.
The HDFC Mutual Fund is managed by HDFC Asset Management Company (HDFC AMC) Limited. Let us talk about the consumer product – HDFC Flexi Cap Fund
HDFC Flexi Cap Fund
The primary objective is to generate capital appreciation/income from a portfolio, predominantly invested in equity & equity-related instruments.
The fund follows the following approach to investing.
- Focus on fundamentally strong companies with growth drivers in the medium to long term.
- Focus on competitive position, corporate governance, and industry outlook.
- Emphasis on valuation to assess risk-reward and provide a reasonable margin of safety.
- A holistic approach to valuations without relying solely on traditional parameters like P/E or P/B.
The fund had invested 90.85% of its assets in equity & equity-related stocks, 3.21% in real estate, and 5.94% in cash and cash equivalents.
The significant sectoral exposure is to Banks, which account for roughly one-fourth of the portfolio.
Top 5 Holdings
|ICICI Bank Ltd.||9.13|
|HDFC Bank Ltd.||5.62|
|State Bank of India Ltd.||5.28|
|Bharti Airtel Ltd.||4.71|
|Hindustan Aeronautics Ltd.||4.63|
Source: HDFC MF
|This Fund||S&P BSE 500 TRI||Equity: Flexi Cap|
Source: Value Research
- Ms. Roshi Jain (Since July 29, 2022) has over 17 years of experience in research and fund management. Before joining HDFC Asset Management Co Ltd in December 2021, she worked with Franklin Templeton India AMC Ltd. as a Vice President & Portfolio Manager. Ms Jain earned her Post Graduate Diploma in Management from the Indian Institute of Management, Ahmedabad, in 2002. She earned her Chartered Accountancy from the Institute of Chartered Accountants of India in 1998 with an All-India Rank 2. She is also a Chartered Financial Analyst (CFA) charter holder.
Who Should Invest in HDFC Flexi Cap Fund?
The fund is suitable for investors willing to invest across market cap. However, investors need to understand the aggressive risk exposure of this fund.
Why Invest in this Fund?
- The fund provides an opportunity to invest in companies of various market caps.
- Aims to provide diversification to an investor’s overall equity mutual fund portfolio.
- Experienced fund management and research teams with a track record of managing equity assets across market cycles.
- Emphasis on risk management – portfolio diversification across stocks and sectors; focus on good quality businesses.
- One of the largest funds in the flexi-cap category.
Ideal Time Horizon
- One should look at investing for at least three years or even more.
- Investment through Systematic Investment Plan (SIP) may help in tackling the volatility of the broader equity market.
The HDFC Flexi Cap Fund has a proven track record of over 25 years, with an Asset Under Management of ₹36,345.36 Cr as on June 30, 2023.
The fund has consistently outperformed both the benchmarks and the category average also. Therefore, investors looking to generate wealth over the long term can consider this fund with an understanding of high risk.