HDFC Flexi Cap Fund Review: Should You Invest in 2025?
By August 2025, the HDFC Flexi Cap Fund will turn 30 years old. Ever since the scheme was launched, it has been giving an average annualized return of around 19%. So, if you had started a monthly investment of Rs 3,000 in the scheme in 2015, then by now, you could have earned a huge corpus of Rs 9,74,417.
You must be regretting already, but don’t worry. You can still earn such a massive amount if you start a SIP in the scheme in 2025. And this HDFC Flexi Cap Fund Review will help you assess the scheme inside out. So that you can make informed investment decisions.
It examines the scheme based on some key parameters like the investment strategy, the fund manager, returns, portfolio allocation and stock quality.
So, without wasting any more of your time, let us delve into the review with the strategy of the scheme.
What is the Strategy of the HDFC Flexi Cap Fund?
The investment strategy of the HDFC Flexi Cap Fund is a dynamic and disciplined approach. It actively manages the portfolio based on in-depth market research.
The fund house, HDFC Mutual Fund, focuses on investing in companies with strong fundamentals that have a high future growth potential. The scheme aims to give you risk-adjusted returns with the help of portfolio diversification.
Such an impressive investment strategy has made this fund a compelling choice for investment among a large number of investors.
What are the Returns of the HDFC Flexi Cap Fund?
The scheme has been giving outstanding returns that you will not believe until you see them for yourself:
SIP Returns of HDFC Flexi Cap Fund
The fund has given as much as 24.03% and 25.44% SIP returns in 3-year and 5-year plans, respectively. Now, take a good look at the graph below and compare these returns with the category average and the NIFTY Small Cap 250 TRI.
Did you see the towering difference between the HDFC Flexi Cap Fund Growth and others? The scheme has outperformed both of them by a margin of almost 10%.
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Rolling Returns
The rolling returns of the scheme are 16.09% in 3 years and 15.45% in 5 years. They are also beating the benchmark NIFTY 500 TRI. You can refer to the graph below for a better understanding:
Although the margins are not as high as in the case of SIP returns, the performance is still quite impressive for a Flexi Cap Mutual Funds.
Must Learn: How To Calculate Rolling Returns In Mutual Funds?
Returns can tell you about the past performance of a mutual fund but what about the financial health of the scheme in real time? For this, a detailed portfolio analysis is ready to serve you in the next section.
Portfolio Review of HDFC Flexi Cap Fund
The market goes through many ups and downs, but what can help a mutual fund scheme navigate through these fluctuations is its portfolio. Let us now review the portfolio of the HDFC Flexi Cap Fund and see what it reveals:
1. Market Cap Allocation
The scheme invests 86.49% of its assets in large cap stocks. This is to make sure that you get stable returns in the long term. Now take a glance at the graph below to have a clearer image of the allocation:
To achieve the objective of providing capital appreciation to you, the scheme also invests 9.78% and 3.7% of its assets in mid and small cap stocks respectively.
2. Asset Allocation
If you carefully observe the graph below, you will notice that the scheme has allocated 87.39% of its funds to equity instruments. This is to make sure that you can earn great returns from your portfolio.
The scheme has also allocated 8.21% to cash and its equivalent, 2.79% to real estate and 1.61% to debt instruments. These assets provide the fund manager with enough liquidity and flexibility to seize potential market opportunities.
3. Sector Allocation
The scheme is heavily investing in financial services, 39.76%, which shows its confidence in India’s banking and financial sector. This sector is greatly benefiting from economic growth and digitalization.
Other key sectors, as you can see in the above graph, are:
- Consumer cyclical: 14.9%
- Healthcare and technology: 9.69%
- Technology: 9.19%
By investing relatively less funds in sectors like technology and materials (4.89%), the HDFC Flexi Cap Fund is avoiding overexposure to these volatile sectors.
Smart Investments, Bigger Returns
Such a balanced yet diverse portfolio allocation reduces overall risks from the Indian market. But “What about the companies that the fund is investing in ultimately?”
After all, their financial health will have a direct impact on your portfolio. So now, let us have a look at what the stock quality of the fund looks like.
How Is the Stock Quality of the HDFC Flexi Cap Fund?
If you conduct an HDFC Flexi Cap Fund Growth Compare in a detailed manner, then the stock quality of the fund becomes a key parameter. And when you carefully observe the table below, you will notice that the fund’s stock quality is relatively better than the category average.
But the detailed findings regarding the stock quality are presented for you after this table.
| Stocks Quality | ||||
|---|---|---|---|---|
| P/E | Earnings Growth | Sales Growth | Cash Flow Growth | |
| HDFC Flexi Cap Fund | 17.68 | 27.42 | 17.19 | 27.05 |
| Category Average | 17 | 18.12 | 22.27 | 18.81 |
- Although the P/E ratio of 17.68% suggests that the stocks are overvalued but it indicates that these stocks have high future growth potential.
- An earnings growth rate of 27.42% means that the companies that the fund invests in are growing rapidly and earning huge profits.
- Similarly, the sales growth of 17.97% shows that sales of those companies are increasing at a quite impressive rate.
- A cash flow growth of 27.05% in these companies suggests that their financial position is quite strong to repay their debts and pay dividends.
You must have noticed that the sales growth is lower than the category average. But this is when the world is facing disruptive events like regional conflicts and trade wars.
Those companies increased their sales against all odds. This is rather a good indicator of their overall financial health.
Meet the Fund Manager of HDFC Flexi Cap Fund
Ms. Roshi Jain is the current fund manager handling the HDFC Flexi Cap Fund Growth for you. And she is doing very well so far. The following are her academic qualifications:
- Chartered Accountant (CA)
- Chartered Financial Analyst (CFA)
- MBA from IIM-A (Ahmedabad)
She has been working in research and fund management for over 18 years now. Her rich experience in the financial markets and mutual funds industry brings key insights that help her team of highly seasoned professionals identify high-quality stocks for you.
The above qualifications can be seen in many professionals, but the best qualification is still a strong track record of success. So let us now evaluate how well Ms. Jain is actually in her work.
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Now that we have reviewed the HDFC Flexi Cap Fund based on all key parameters, it is time to present final thoughts on the fund and put a concluding end to this review.
Final Thoughts
It is very important for you to assess mutual funds thoroughly before starting SIP or make lump sum investments in them. The above review has provided all the necessary details regarding one of the most promising flexi cap funds in the market. So, if you are looking for a scheme that can create future wealth for you in a sustainable way, then this scheme can be a perfect fit for you.
