HDFC Mutual Fund announces New Fund Offer (NFO) – HDFC Multi Cap Fund -A one-stop solution for investors looking to diversify portfolio across market cap segments (Large Caps, Mid Caps, Small Caps)
By Pinkerala News Desk | Nov 19, 2021
The fund will aim to generate long-term capital appreciation through controlled exposure to Large, Mid, and Small Caps.
Kochi, 18 November 2021: HDFC Asset Management Company, one of India’s leading mutual fund houses with ₹ 4.48 trillion in assets under management has announced the launch of a New Fund Offer – HDFC Multi-Cap Fund for investors looking to diversify their portfolio with a disciplined exposure to large-cap, mid-cap, and small-cap segments. The Scheme will make mandatory allocation of a minimum of 25% of its total assets each in large, mid, and small-cap companies, while the balance 25% of its total assets will be allocated based on the market view of the fund manager. The Scheme will have a choice of a wide representation of sectors across market capitalization. The NFO will open on November 23, 2021, and will close on December 7, 2021.
Historically, different Market cap segments have outperformed each other at different points in time. Out of the last 16 Financial years (FY06 to FY21), Large caps have been the top-performing market cap segment in 6 years, Mid Caps in 3 years, and Small Caps in 7 years. Consequently, this presents a strong case for diversification across market cap segments. However, deciding the allocation to Large, Mid, and Small Caps is not easy for most investors. HDFC Multi-Cap Fund could provide a one-stop solution for investors looking to diversify their portfolio across market cap segments with an aim to get the stability of Large Caps, growth of Mid Caps, and potential of Small Caps through one Fund. The multi-Cap approach helps investors focus on diversification instead of predicting outperformance/underperformance of different market cap segments.
In terms of investment strategy, HDFC Multi-Cap Fund will follow a mix of top-down and bottom-up approaches to stock selection. As per the current investment strategy, the Scheme will invest ~60%-75% of Total Assets in Large and Mid Caps*. Further, it will invest ~25%-40% of Total Assets in Small Caps. The Scheme will invest without a style bias and aims to capture opportunities across growth, value, and turnaround companies.
*The current investment strategy/proposed allocation is subject to change depending on the market conditions, within the permissible limits mentioned in the Scheme Information Document.
The Scheme is managed by Mr. Gopal Agrawal, who has nearly 19 years of experience in Fund Management and equity research. Commenting on HDFC Multi-Cap Fund, Gopal Agrawal, who is the Fund Manager of this Scheme, said, “We have observed that different market cap segments perform differently at different points in time. HDFC Multi-Cap Fund is a one-stop solution for investors looking for exposure to different market caps, through one fund in a disciplined manner, to achieve better risk-adjusted returns. We believe that long-term fundamentals, effective diversification, and stock selection are critical in a constantly changing environment. Going forward, the structural growth drivers and supportive external environment bode well for India's secular growth story. Further, robust earnings growth outlook and favorable macroeconomic environment bode well for equities over the medium to long term.”
HDFC Multi-Cap Fund is suitable for investors with a medium to long-term investment horizon, looking for disciplined exposure to Large, Mid, and Small Caps.
About HDFC AMC
HDFC Asset Management Company Limited (HDFC AMC) is Investment Manager to HDFC Mutual Fund, one of the largest mutual funds in the country. It was incorporated under the Companies Act, 1956, on 10th December 1999 and was approved to act as an Asset Management Company for HDFC Mutual Fund by SEBI on 3rd July 2000. It has other SEBI licenses viz. PMS / AIF.
HDFC AMC has a diversified asset class mix across Equity and Fixed Income/Others. It also has a countrywide network of branches along with a diversified distribution network comprising Banks, Independent Financial Advisors, and National Distributors.
For Disclosure of percentage of AUM by geography and Asset Class-wise disclosure of AUM & AAUM click here:
HDFC MULTI-CAP FUND
(An open-ended equity scheme investing across large cap, mid-cap & small-cap stocks)
MUTUAL FUND INVESTMENTS ARE SUBJECT TO MARKET RISKS, READ ALL SCHEME-RELATED DOCUMENTS CAREFULLY.
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