HDFC AMC is the Investment Manager of HDFC Mutual Fund, the largest mutual fund in India, with over Rs 4 lakh crores as Assets under management. HDFC AMC has a diversified asset class mix across Equity and Fixed Income/Others.
Let us talk about the flagship product – HDFC Large and Mid-Cap Fund
HDFC Large and Mid-Cap Fund
The investment objective for HDFC Large and Midcap Fund
The Scheme aims to generate long-term capital appreciation/income from a portfolio of equity and equity-related securities of predominantly large-cap and mid-cap companies.
Investment process for HDFC Large and Mid-Cap Fund
This fund aims to invest in companies that are good at executing their operations effectively and are available at reasonable valuations at the entry point.
The fund invests in the companies that operate in markets where the Total Addressable Markets (TAM) provide them the potential of being runways for growth.
Portfolio Composition of HDFC Large and Midcap Fund
The portfolio holds the major exposure in large-cap stocks at 56%. The major sectoral exposure is to Finance which is at around 25%. The top 5 sectors hold around 65% of the overall portfolio
Data as of 31st Dec 2022.
Source: Morningstar
Top 5 holdings in HDFC Large and Mid-Cap Fund
| Name | Sector | Weightage % |
| HDFC Bank Ltd. | Financial Services | 5.48 |
| ICICI Bank Ltd. | Financial Services | 4.41 |
| Infosys Ltd. | Information Technology | 3.46 |
| State Bank of India | Financial Services | 3.20 |
| Reliance Industries | Conglomerate | 3.15 |
Source: Morningstar
Performance over 28 years
If you would have invested Rs. 10000 at the inception of the fund, it would be now valued at Rs. 2.70 lakhs.
Source: Morningstar
The fund has given consistent returns and has outperformed the benchmark over the period of 28 years by generating a CAGR (Compounded Annual Growth Rate) of 12.09%.
Fund manager
Gopal Agrawal: Collectively over 17 years of experience in Fund Management and 2 years in Equity Research.
Priya Ranjan: Collectively over 15 years of experience. Senior Equity Analyst and Fund Manager for Overseas Investments.
Who should invest in HDFC Large and Mid-Cap Funds?
Investors who are seeking:
- to generate long-term capital appreciation/income.
- investments in a mix of equity and debt instruments.
Why Invest?
- The fund offers exposure to mid-cap for good opportunities for wealth creation.
- At the same time, it offers large-cap diversification and steady portfolio growth.
Horizon
- One should look at investing for a minimum of 5 years or more.
- Investment through Systematic Investment Plan (SIP) may help in tackling the volatility of the broader equity market.
Conclusion
This is the oldest fund with a proven track record of 28 years and has delivered 12.09% CAGR consistently which is better than most equity funds.
Thus, it is best for investors looking for a diversified portfolio with exposure to large and mid-cap for wealth creation as well as steady growth.
Disclaimer
This is not recommendation advice. All information in this blog is for educational purposes only.
