Positioned within the Large & Mid-Cap Fund category, the HDFC Large and Mid Cap Fund boasts a formidable track record, underscored by its above-average performance among peers as per Crisil rankings. With a substantial fund size of ₹18,691.62 crore, constituting 8.57% of the investment in its category, the fund commands a significant market presence. Its expense ratio of 1.7% is marginally lower than the category average of 1.92%, enhancing its appeal to investors.
HDFC Large & Mid Cap Fund Performance Metrics:
Analyzing key performance metrics reveals the fund’s resilience and potential for generating superior returns despite market fluctuations.
| METRIC | FUND VALUE | CATEGORY AVG |
| Standard deviation | 12.38 | 12.05 |
| Beta | 0.99 | 0.94 |
| Sharpe ratio | 1.46 | 1.17 |
| Treynors ratio | 0.18 | 0.15 |
| Jensens alpha | 3.26 | 0.52 |
Investment Strategy and Suitability
The fund’s investment strategy focuses on capitalizing on growth opportunities across market segments while effectively managing risk. With 97.84% of its investments allocated to domestic equities, including significant proportions in large-cap, mid-cap, and small-cap stocks, the fund caters to investors with a medium to long-term investment horizon of 3-4 years. This strategy appeals to individuals seeking high returns while being prepared to weather moderate fluctuations in their investments.
HDFC Large & Mid Cap Fund Returns Analysis
Examining the fund’s performance over various investment durations provides deeper insights into its growth trajectory and potential for wealth creation.
- One-Year Returns: Over the past year, the fund delivered a commendable return of 46.77%, surpassing both the Nifty LargeMidcap 250 TRI benchmark and the category average, showcasing its ability to capitalize on market opportunities amidst volatility.
- Two-Year Returns: With a staggering absolute return of 75.46% over two years, significantly outperforming its peers, the fund underscores its prowess in generating sustained growth and value for investors.
- Five-Year Returns: Over five years, the fund recorded a remarkable absolute return of 166.94%, substantially exceeding the category average. This long-term performance highlights the fund’s consistency and ability to deliver substantial returns over extended horizons.
Portfolio Composition
The fund’s portfolio reflects a strategic blend of equity holdings, comprising large-cap, mid-cap, and small-cap stocks. Notable holdings include HDFC Bank Ltd., ICICI Bank Ltd., Axis Bank Ltd., State Bank of India, and Infosys Ltd., among others. Its portfolio turnover ratio of 7.11% signifies a prudent approach to portfolio management, emphasizing long-term value creation.
HDFC Large & Mid Cap Fund: Comparative Performance
| Category | 1 D | 1 M | 3 M | 6 M | YTD | 1 Y | 2 Y | 3 Y | 5 Y |
| This Fund | -0.51% | 2.14% | 7.17% | 20.59% | 11.50% | 46.77% | 32.31% | 25.01% | 21.67% |
| Nifty 50 | -0.80% | 0.27% | 3.28% | 12.98% | 4.48% | 22.01% | 18.39% | 13.70% | 13.85% |
| Benchmark: Nifty LargeMidcap 250 TRI | -0.52% | 2.18% | 7.21% | 20.48% | 11.21% | 42.29% | 29.91% | 21.61% | 20.95% |
| Category Average | -0.42% | 2.35% | 7.89% | 21.04% | 12.75% | 41.63% | 28.21% | 20.80% | 19.51% |
| Category Rank | 21/30 | 17/30 | 18/30 | 15/27 | 18/28 | 7/27 | 4/27 | 4/27 | 3/23 |
| Best in Category | 0.06% | 5.44% | 13.05% | 34.39% | 22.51% | 66.09% | 37.33% | 28.01% | 26.78% |
| Worst in Category | -0.75% | 0.37% | 4.69% | 9.70% | 3.99% | 22.55% | 18.82% | 13.31% | 15.01% |
HDFC Large & Mid Cap Fund Taxes
Long-Term Capital Gain Tax: If sold after holding for more than one year, a long-term capital gain tax of 10% applies, provided the total long-term capital gain exceeds ₹1 lakh. No cess or surcharge is included in this tax rate.
Short-Term Capital Gain Tax: Selling investments held for less than one year incurs a short-term capital gain tax of 15%, excluding any cess or surcharge.
Disclaimer: The information provided in this article is for educational and informational purposes only. It should not be considered as investment advice or a recommendation to invest in any particular mutual fund or asset class. Past performance is not indicative of future results, and investors should conduct their research and consult with a financial advisor before making any investment decisions. Investing in mutual funds involves risks, including the possible loss of principal invested.
