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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.