The HDFC Flexi Cap Fund, launched in January 1995, has emerged as one of the top-performing mutual fund schemes in India, making it a popular choice among investors. This scheme, which is set to complete 30 years in January 2025, has delivered impressive returns since its inception. What makes it particularly appealing is that even a modest monthly investment of Rs 1000, made through a Systematic Investment Plan (SIP) since its launch, has now grown to a whopping Rs 2 crore. Let’s dive into the fund’s remarkable performance and understand how it has created wealth for its investors.
Saving Just Rs 1000 a Month Can Yield Big Returns
The mutual fund industry in India saw a surge in new schemes in the early 1990s, with many investors not fully aware of how SIPs could help them create long-term wealth. However, those who recognized the potential of SIPs early on and started investing small amounts regularly have been able to reduce their financial worries significantly.
While saving Rs 1000 a month might have seemed like a challenge for some people 29 years ago, it’s a reasonable amount for most. A monthly SIP of Rs 1000 in the HDFC Flexi Cap Fund since 1995 has grown substantially, showcasing the power of disciplined, long-term investing.
Incredible Growth Through One-Time Investments Too
For those who prefer a lump sum investment over SIPs, the HDFC Flexi Cap Fund has proven to be a solid performer here as well. The fund’s one-time investment returns are equally impressive.
- 1-Year Return: 40.68%
- 3-Year Return: 25.90%
- 5-Year Return: 25.77%
- 7-Year Return: 17.92%
- 10-Year Return: 15.50%
- 20-Year Return: 19.46%
- Return Since Launch: 19.35%
Since its inception, this fund has provided an annualized return of 19.35% to one-time investors. For instance, someone who invested Rs 25,000 in the fund at the start would now be sitting on over Rs 40 lakh.
SIP Returns That Beat Expectations
According to Value Research, the HDFC Flexi Cap Fund has given a 21.8% annualized return over its 29-year journey to SIP investors. Investors who started a SIP of Rs 1000 per month from the fund’s launch would have accumulated a staggering Rs 2,16,66,165 by now. Even those who began with a one-time investment of Rs 10,000 would have seen their investment grow to more than Rs 3,58,000.
Key Facts About HDFC Flexi Cap Fund
- Launch Date: January 1, 1995
- Annualized Return Since Launch: 19.35%
- Benchmark: NIFTY 500 TRI
- Total Assets Under Management (AUM): Rs 63,436 crore (as of August 31, 2024)
- Expense Ratio: 1.44% (as of August 31, 2024)
- Minimum Investment: Rs 100
- Minimum SIP: Rs 100
The fund has consistently delivered strong returns over the years, making it one of the best-performing flexi cap funds in India.
HDFC Flexi Cap Fund’s Portfolio: A Diverse Mix of Sectors
HDFC Flexi Cap Fund allocates its investments across various sectors, including financial services, healthcare, technology, and more. Here’s a look at some of the top stocks in its portfolio:
- ICICI Bank
- HDFC Bank
- Axis Bank
- Cipla
- HCL Technologies
- SBI Life Insurance
- Bharti Airtel
- Kotak Mahindra Bank
- Maruti Suzuki
- Infosys
- State Bank of India (SBI)
This diversified approach allows the fund manager to take advantage of growth opportunities across sectors while minimizing risk through allocation across different industries.
What Makes Flexi Cap Funds Unique?
Flexi cap funds are equity mutual funds that provide the fund manager with the flexibility to invest in stocks across different market capitalizations. This means that the fund manager is not restricted to a particular category, such as large-cap, mid-cap, or small-cap stocks. Instead, they can allocate funds based on market conditions and opportunities.
For example, if large-cap stocks are underperforming, the fund manager can move some of the capital to mid-cap or small-cap stocks to capture growth. Similarly, if mid-caps are facing challenges, the fund manager can shift focus to large-cap stocks, providing stability during volatile periods.
This flexibility allows flexi cap funds to adapt to changing market conditions and offer better returns in the long term. HDFC Flexi Cap Fund has been a prime example of this strategy in action, consistently delivering returns that have beaten its benchmark over the years.
