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.
HDFC Largecap and Midcap fund
Investment objective
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
The Scheme would predominantly invest in companies spanning the entire market capitalization, which:
- Are likely to achieve above-average growth
- Enjoy distinct competitive advantages
- Have superior financial strength
- Are trading at relatively attractive valuations
- Have value-unlocking potential.
Portfolio Composition
The HDFC Large and Mid-cap Fund had invested more than 98% of the funds in equity, and the remaining amount was held in the form of cash and cash equivalents as on 31st March 2023.
It holds significant exposure in large-cap equity at 57%, and the significant sectoral exposure is to banks which account for over 16% of the portfolio. The top five sectors hold up to 44% of the portfolio.
Top 5 Holdings for HDFC Largecap and Mid-cap Fund
| Name | Weightage % |
| HDFC Bank Ltd. | 5.39 |
| ICICI Bank Ltd | 3.99 |
| Infosys Limited | 3.14 |
| State Bank of India | 2.74 |
| Reliance Industries Ltd. | 2.64 |
Source: HDFC MF
Performance
| Fund name | 1Y | 3Y | 5Y | Since Inception |
| HDFC Large Mid-cap Fund Direct-Growth (%) | 4.55 | 34.31 | 13.18 | 11.18 |
| NIFTY Large Mid-cap 250 Index | 0.62 | 31.98 | 12.13 | 14.46 |
Date of Inception of Direct Plan: 01st January 2013
Note: Returns over one year are annualized
Source: HDFC MF
HDFC Top 100 Fund
Fund Managers
- Mr. Priya Rajan (Since 01st May 2022) – Senior Equity Analyst and Fund Manager for overseas Investments – Collectively over 15 years of experience.
- Mr. Gopal Agrawal (Since 16th July 2020) – Collectively, over 17 years of experience in Fund Management and two years in Equity Research
Who should invest in HDFC Large and Mid-cap Funds?
Investors looking to invest in an equity portfolio with very high risk and seeking better returns than the debt instruments can consider this fund.
However, investors should remain invested long-term to witness wealth creation.
Why invest in this Fund?
- Large-cap funds offer an excellent opportunity to generate high long-term returns, while Small & Mid-cap stocks allow one to go beyond the usual large blue-chip stocks and present possible higher capital appreciation.
- This fund has consistently generated good returns and outperformed the NIFTY Large Mid-cap 250 Index benchmark.
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 Large and Mid-cap Fund is a good option for investors willing to take exposure to large and mid-cap equities with some additional risk for good returns over the long term.
However, investors should remain invested long-term to witness wealth creation.
