HDFC Mid Cap Opportunities Fund: Strong long term track record

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.

How has the fund performed?
With a 10-year return of 24.13%, the fund has outperformed the benchmark index (19%) and the category average (21.96%).

The fund has comfortably beaten both the index and the peers over the past decade.

Annualised performance (%)

The fund has outperformed over the past 3- and 5-year periods.

Yearly performance (%)

The fund’s performance has been inconsistent in recent years.

Basic facts
Date of launch: 25 JUN 2007
Category: EQUITY
Type: MID CAP
Average AUM: Rs 21,081 CR
Benchmark: NIFTY MIDCAP 100
TOTAL RETURN INDEX
*As on 29 JAN 2019

What it costs
NAVs*
Growth option: Rs 51
Dividend: Rs 28
Minimum sip amount: Rs 500
Expense ratio (%) 2.15
Exit load: 1% for redemption within 365 days
*As on 29 JAN 2019

Where does the fund invest?

The fund has a clear mid-cap tilt, and has taken some exposure in small-caps too.

Top 5 sectors in portfolio (%)

The fund has overweight positions in engineering and chemcials sectors.

Top 5 stocks in portfolio (%)

The fund takes modest positions in its top picks.

How risky is it?

The fund’s risk-return profile is superior to many of its peers.
Wherever not specified, data as on 31 dec 2018. source: value research

Should You Buy?
Before the strict exposure norms for fund categories came in last year, this mid-cap fund was not averse to taking sizeable bets in large-caps. It has since cut its large-cap presence substantially in favour of its core mid-cap mandate. The fund continues to focus on a bottom-up stock selection strategy with strict emphasis on the quality of its bets.

Its corpus has ballooned in recent years resulting in a bloated portfolio that allows a modest exposure in its top bets and makes for a longer tail. However, it also limits the risk profile of the fund. The fund enjoys a stellar long-term track record but has been inconsistent in recent years. However, it continues to boast of a superior risk-return profile compared to most peers, making it a worthy pick in the segment.