The mutual fund industry has been growing rapidly, with innovative schemes being launched regularly. However, some of the oldest schemes in the market have delivered exceptional returns, making them golden choices for investors. One such scheme is the HDFC Flexi Cap Fund, which has delivered remarkable results over nearly three decades.
This fund has proven its worth with consistent returns, both on systematic investment plans (SIPs) and lump sum investments. Over the past 29 years, it has transformed a modest Rs 5,000 monthly SIP into a massive Rs 10 crore. Let’s explore how this fund works and what makes it stand out.
How Rs 5,000 Monthly SIP Became Rs 10 Crore
Launched in January 1995, the HDFC Flexi Cap Fund has provided an annualized return of 21.77% for SIP investors over the past 29 years. Here’s how a regular investment of Rs 5,000 per month, along with an initial Rs 25,000 upfront investment, has grown into Rs 10 crore.
- Monthly SIP Amount: Rs 5,000
- Total Investment Over 29 Years: Rs 17.65 lakh
- Total Value After 29 Years: Rs 10.01 crore
- Annualized Return: 21.77%
These returns show the power of compounding and the potential of long-term SIP investments in mutual funds.
Impressive Returns Across Different Time Periods
The HDFC Flexi Cap Fund has consistently delivered high returns in various market conditions. Here’s a breakdown of its performance over different time frames:
- 20-Year SIP Return: 17.53% p.a.
- 15-Year SIP Return: 17.31% p.a.
- 10-Year SIP Return: 19.5% p.a.
- 5-Year SIP Return: 29.19% p.a.
This fund has shown resilience and growth across short, medium, and long-term investments, making it a solid option for investors seeking consistent returns.
One-Time Investment: From Rs 50,000 to Nearly Rs 1 Crore
Apart from SIPs, lump sum investments in the HDFC Flexi Cap Fund have also yielded excellent returns. Since its launch, the fund has offered an annualized return of 19.28% on one-time investments. If you had invested Rs 50,000 in 1995, it would have grown to nearly Rs 98 lakh today.
Here’s a quick look at the fund’s returns over different durations:
- 1-Year Return: 42.70%
- 3-Year Return: 23.75% p.a.
- 5-Year Return: 25.00% p.a.
- 7-Year Return: 18.44% p.a.
- 10-Year Return: 15.81% p.a.
- 15-Year Return: 15.75% p.a.
- 20-Year Return: 19.24% p.a.
These returns make it clear why the HDFC Flexi Cap Fund is considered one of the top-performing schemes in its category.
Key Features of HDFC Flexi Cap Fund
- Total Assets Under Management (AUM): Rs 66,225 crore (as of September 30, 2024)
- Expense Ratio: 1.44% (as of August 31, 2024)
- Category: Flexi Cap
- Minimum Lump Sum Investment: Rs 100
- Minimum SIP Investment: Rs 100
The large AUM and flexibility of the fund show that it is well-managed, with the ability to shift between different market caps to take advantage of market conditions.
What Are Flexi Cap Funds?
Flexi cap funds are a type of equity mutual fund that provides flexibility in investment decisions. The fund manager can allocate money across large-cap, mid-cap, and small-cap companies, depending on market conditions and the fund’s strategy. This flexibility helps the manager take advantage of different growth opportunities in the market.
In simple terms, if large-cap stocks seem risky, the manager can move funds to mid or small-cap stocks, and vice versa. This dynamic allocation allows the fund to adjust based on market trends, enhancing the potential for growth.
Top Holdings in HDFC Flexi Cap Fund
The top stocks in this fund include leading companies from various sectors:
- HDFC Bank
- ICICI Bank
- Axis Bank
- HCL Technologies
- Cipla
- Bharti Airtel
- Kotak Bank
- SBI Life Insurance
- Maruti Suzuki
- Piramal Pharma
- Infosys
These well-established companies provide stability and growth to the fund, making it a reliable choice for long-term investors.
