HDFC Flexi cap mutual fund review: In top form, but high volatility

ET Wealth collaborates with Value Research to analyse top mutual funds. We examine the key fundamentals of the fund, its portfolio and performance to help you make an informed investment decision.

BASIC FACTS
DATE OF LAUNCH
1 JANUARY 1995
CATEGORY

EQUITY
TYPE
FLEXI CAP
AUM*
Rs.27,433 Crore

BENCHMARK
NIFTY 500 TOTAL
RETURN INDEX

WHAT IT COSTS
NAV**
GROWTH OPTION
Rs.961.01
IDCW
Rs.51.17
MINIMUM INVESTMENT
Rs.5,000
MINIMUM SIP AMOUNT
Rs.500

EXPENSE RATIO*** (%)
1.72
EXIT LOAD
1% for redemption
within 365 days

*AS ON 31 MAY 2022
**AS ON 28 JUNE 2022
***AS ON 31 MAY 2022

FUND MANAGER
PRASHANT JAIN
TENURE: 19 YEARS

Recent portfolio changes
New entrants: Housing Development Finance Corporation, Ultratech Cement, Ashok Leyland, Life Insurance Corporation of India, TCS.
Increasing allocation: Bharti Airtel, Container Corporation Of India, HDFC Bank, Mahindra & Mahindra, SBI Cards & Payments Services, HCL Technologies, Housing Development Finance Corporation, Infosys, State Bank of India, Ultratech Cement.
Complete exits: CG Power & Industrial Solutions, Torrent Pharma, NHP

Should you buy?
Earlier known as HDFC Equity, this flagship offering from HDFC MF run by veteran fund manager Prashant Jain is known to take a contrarian stance. It backs its high conviction bets with aggressive positions and sticks with them even through prolonged periods of pain. This has historically lent a high degree of volatility to the fund return with alternating bouts of sharp underperformance followed by sharp upswing in return profile. As some of its prominent bets turned in its favour, the last year and half has seen the fund return to top form after a brief spell on the sidelines. However, its risk-return profile remains weak. While its approach tends to pay off over market cycles, the longer payoff horizons and oscillations may not suit everyone.

(Source: Value Research.)