For investors looking to grow capital in the long run, HDFC Mid-Cap Opportunities Fund offers a proven track record and a focus on high-potential mid-cap stocks. It’s an ideal choice for those willing to handle moderate-to-high risk levels in exchange for robust returns. Launched in 2007, this open-ended equity fund has delivered remarkable results over various time frames, doubling investors’ money in recent years and showing a steady growth path over the last decade.
With an Asset Under Management (AUM) of ₹73,572.56 crore as of October 2024, this fund currently stands as the largest mid-cap fund in India, focusing on companies with solid fundamentals and high growth potential.
What Makes HDFC Mid-Cap Opportunities Fund Unique?
This mutual fund primarily invests in mid-cap companies that demonstrate strong growth potential, sound financial health, and a sustainable business model. The investment strategy focuses on:
- Identifying mid-cap companies with promising development opportunities.
- Ensuring financial stability by selecting businesses with a strong balance sheet.
- Selecting companies with sustainable models to ensure consistent growth over time.
- Capitalizing on undervaluations to secure future capital growth.
Impressive Growth Over 10 Years
HDFC Mid-Cap Opportunities Fund has yielded outstanding returns for its investors, becoming a solid investment option for long-term wealth generation. Here’s a quick look at the growth of an initial investment of ₹1 lakh over different time frames:
- 1 Year: ₹1,48,334
- 3 Years: ₹2,18,247
- 5 Years: ₹3,89,802
- 10 Years: ₹6,62,289
- Since Inception (17 Years): ₹11,33,948
These returns underline the fund’s capacity to deliver significant returns, especially over longer investment horizons, making it suitable for those willing to stay invested over extended periods.
Annual Returns: Beating Benchmarks
This scheme has outperformed its benchmark, the Nifty Midcap 150 Total Return Index (TRI), in multiple periods. Here’s a summary of its average annual returns (as of September 30, 2024):
- 1 Year: 43.99% (Regular), 44.95% (Direct)
- 3 Years: 25.96% (Regular), 26.82% (Direct)
- 5 Years: 28.85% (Regular), 29.73% (Direct)
- 10 Years: 19.03% (Regular), 20.01% (Direct)
The Nifty Midcap 150 TRI has shown returns of 42.94% (1 year), 22.62% (3 years), 28.98% (5 years), and 19.44% (10 years), showing how HDFC’s fund has consistently outperformed its benchmark.
Key Features of HDFC Mid-Cap Opportunities Fund
- Fund Type: Open-ended equity scheme focusing on midcap stocks
- AUM: ₹73,572.56 crore (as of October 25, 2024)
- Benchmark: Nifty Midcap 150 TRI
- Risk Level: Very High
- Launch Date: June 25, 2007
- Minimum SIP Investment: ₹100
- Expense Ratio: 0.72% (Direct Plan), 1.39% (Regular Plan)
- Exit Load: 1% on unit sales within 1 year; none after 1 year
Who Should Invest in HDFC Mid-Cap Opportunities Fund?
This fund is well-suited for investors with a high-risk tolerance who are looking to invest for a long period, typically over five years. Being a midcap fund, it is subject to high market fluctuations, but long-term investment helps in absorbing the volatility. Investing via a Systematic Investment Plan (SIP) can also help manage market risks, allowing for cost averaging over time.
If you’re interested in higher-than-average returns and have the patience to withstand market ups and downs, this fund could be a smart addition to your portfolio. However, always consult with a financial advisor before making investment decisions, as past returns do not guarantee future performance.
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