As one of India’s top-performing mutual funds, HDFC Mutual Fund’s Flexi Cap Fund has been a notable wealth creator for long-term investors. Launched in January 1995, this scheme has consistently delivered strong returns and is set to complete 30 years of operation in January 2025. For those who started small, such as investing Rs 1,000 monthly through a Systematic Investment Plan (SIP), the fund has grown significantly over the years, with some investors now holding funds worth nearly Rs 2 crore.
Here’s a look at the returns, growth patterns, and investment strategy that make the HDFC Flexi Cap Fund a top pick for those seeking long-term wealth accumulation.
What is a Flexi Cap Fund?
A Flexi Cap Fund is an equity mutual fund that allows fund managers the flexibility to invest across large, mid, and small-cap stocks. The flexibility helps fund managers allocate investments based on market conditions, enabling them to switch between market caps as needed. This adaptability helps in balancing risk and optimizing returns, making Flexi Cap Funds attractive for diverse market cycles.
HDFC Flexi Cap Fund is one such fund that has consistently adjusted its portfolio according to market dynamics, investing in sectors like financial services, healthcare, technology, telecom, and automobiles.
Impressive Returns: SIP and One-Time Investment Outcomes
SIP Performance
If an investor began investing Rs 1,000 monthly through a SIP since the scheme’s inception in 1995, the accumulated amount would be worth close to Rs 2 crore today, owing to the fund’s robust 21.76% annualized SIP return over 29 years. Here’s how SIP performance has shaped up over different timeframes:
- 1 Year: 45.76% annual return
- 3 Years: 25.67% annual return
- 5 Years: 24.83% annual return
- 10 Years: 15.96% annual return
- 20 Years: 19.29% annual return
- Since Launch: 21.76% annualized return on SIP
With such returns, even those investing as little as Rs 1,000 monthly over time have reaped significant benefits, turning small savings into a substantial amount.
One-Time Investment Performance
For those who invested a lump sum amount at the fund’s inception, the results have been equally impressive. A one-time investment in 1995 has grown 195 times, turning a modest amount like Rs 25,000 into more than Rs 49 lakh today, thanks to an annualized return rate of 19.38%.
Long-Term Performance and Growth of the HDFC Flexi Cap Fund
HDFC Flexi Cap Fund’s consistent performance highlights the power of disciplined, long-term investment, even with modest monthly contributions. Here’s an overview of its long-term returns across various time periods:
| Investment Type | Return (%) |
|---|---|
| 1-Year | 45.76% |
| 3-Year | 25.67% |
| 5-Year | 24.83% |
| 10-Year | 15.96% |
| 20-Year | 19.29% |
| Since Launch | 19.38% (One-Time), 21.76% (SIP) |
With such consistent returns, HDFC Flexi Cap Fund has proven its capacity to create wealth over time, making it an attractive choice for both lump-sum and SIP investors.
Portfolio Highlights of HDFC Flexi Cap Fund
The fund is known for investing in sectors with long-term growth potential, making it resilient across various economic cycles. Key portfolio holdings include:
- Financial Sector: ICICI Bank, HDFC Bank, Axis Bank, Kotak Bank, SBI Life Insurance
- Healthcare: Cipla
- Telecom: Bharti Airtel
- Technology: HCL Technologies, Infosys
- Automobile: Maruti Suzuki
These companies provide stability and growth, forming a solid foundation for the fund’s returns. The fund manager has the liberty to shift investments between large, mid, and small-cap stocks based on market conditions, enhancing the fund’s flexibility and risk management.
Benefits of Investing in SIPs with HDFC Flexi Cap Fund
- Low Monthly Contribution: Starting with just Rs 1,000 monthly, investors can build substantial wealth over time. This affordable SIP amount helps individuals start early without a large initial investment.
- Power of Compounding: SIPs in mutual funds like HDFC Flexi Cap leverage compounding, where reinvested earnings lead to exponential growth over time, especially beneficial for long-term investors.
- Systematic Investment: SIPs encourage disciplined, periodic investment, helping investors stay committed despite market volatility, which ultimately contributes to wealth creation.
- Flexible Investment Strategy: The fund manager’s flexibility in shifting between large-cap, mid-cap, and small-cap stocks enables the fund to perform across market cycles, ensuring balanced returns.
Key Scheme Information
To help investors understand the HDFC Flexi Cap Fund better, here are some essential details:
| Scheme Details | Information |
|---|---|
| Launch Date | January 1, 1995 |
| Returns Since Launch | 19.17% annualized |
| Benchmark | NIFTY 500 TRI |
| Total AUM | Rs 66,225 crore (as of Sep 30, 2024) |
| Expense Ratio | 1.43% (as of Sep 30, 2024) |
| Minimum Investment | Rs 100 |
| Minimum SIP | Rs 100 |
With these details, investors can decide if the fund aligns with their financial goals and investment strategy.
How to Start a SIP with HDFC Flexi Cap Fund
Starting an SIP in HDFC Flexi Cap Fund is simple:
- Visit the HDFC Mutual Fund Website: Choose the SIP option and select the HDFC Flexi Cap Fund.
- Set Investment Amount: Choose a comfortable monthly amount, even as low as Rs 1,000.
- Set Up Automatic Payments: Link your bank account to ensure smooth monthly deductions.
- Track Progress: Monitor your SIP investment regularly to see its growth over time.
By staying committed to a regular SIP in a proven fund like HDFC Flexi Cap, you can achieve long-term financial goals and benefit from India’s market growth potential.
Why Consider HDFC Flexi Cap Fund for Long-Term Goals?
For investors focused on wealth creation, HDFC Flexi Cap Fund offers both flexibility and proven growth. With a steady track record, it serves as an excellent option for goals like retirement, children’s education, or creating a large corpus over a period of time. The fund’s strong portfolio and flexible approach to market caps offer stability and growth, making it a solid choice for building wealth over the long term.
