The HDFC Flexi Cap Fund is a versatile investment vehicle that allocates assets across various market capitalizations. With a substantial investment in domestic equities, this fund aims to provide high returns for investors willing to stay invested for a medium- to long-term period, typically 3-4 years or more. The fund’s strategy includes balancing risk by spreading investments across large-cap, mid-cap, and small-cap stocks, with a minimal allocation in debt securities to manage volatility.
Investment Strategy
- Diversification: The fund invests 88.32% in domestic equities, with a focus on large-cap stocks (60.23%), mid-cap stocks (6.43%), and small-cap stocks (3.47%). This diversification across different market segments helps mitigate risks while aiming for high returns.
- Minimal Debt Exposure: The fund has a negligible 0.38% investment in debt securities, all of which are government securities. This limited exposure to debt helps maintain liquidity and reduces the risk associated with interest rate fluctuations.
HDFC Flexi Cap Fund Portfolio Composition (as of 30th April, 2024)
- Equity Holdings: 88.32%
- Debt Holdings: 0.38%
- Others: 11.3%
HDFC Flexi Cap Fund Equity Allocation:
- Large Cap Investments: 60.23%
- Mid Cap Investments: 6.43%
- Small Cap Investments: 3.47%
The large-cap bias provides stability, while the mid and small-cap investments offer growth potential. This blend aims to achieve a balanced risk-return profile.
HDFC Flexi Cap FundTop 10 Stocks in Portfolio:
- ICICI Bank Ltd.:
- Sector: Private sector bank
- Percentage of Total Holdings: 9.57%
- Quantity: 4.40 crore shares
- HDFC Bank Ltd.:
- Sector: Private sector bank
- Percentage of Total Holdings: 9.40%
- Quantity: 3.27 crore shares
- Axis Bank Ltd.:
- Sector: Private sector bank
- Percentage of Total Holdings: 7.72%
- Quantity: 3.50 crore shares
- Hindustan Aeronautics Ltd.:
- Sector: Aerospace & defense
- Percentage of Total Holdings: 5.36%
- Quantity: 72 lakh shares
- Cipla Ltd.:
- Sector: Pharmaceuticals
- Percentage of Total Holdings: 5.03%
- Quantity: 1.90 crore shares
The top 10 stocks represent a diversified mix of sectors, predominantly banking, technology, healthcare, and telecommunications, which are critical drivers of the Indian economy.
Sectoral Allocation
- Banking and Financial Services: Significant exposure with major holdings in ICICI Bank, HDFC Bank, Axis Bank, and SBI.
- Technology: Investment in HCL Technologies showcases the fund’s focus on the robust Indian IT sector.
- Healthcare: Cipla and Apollo Hospitals represent the growing healthcare sector.
- Telecommunications: Bharti Airtel provides exposure to the expanding telecom industry.
Portfolio Management and Turnover
- Turnover Ratio: 34.72%
- This lower turnover suggests a long-term investment strategy, reducing transaction costs and potential tax liabilities.
HDFC Flexi Cap Fund Returns
| Period Invested for | ₹10000 Invested on | Latest Value | Absolute Returns | Annualised Returns | Category Avg | Rank within Category |
| 1 Week | 23-May-24 | 9876.30 | -1.24% | – | -1.72% | 6/39 |
| 1 Month | 30-Apr-24 | 10198.30 | 1.98% | – | 0.94% | 8/39 |
| 3 Month | 29-Feb-24 | 10669.10 | 6.69% | – | 5.95% | 15/38 |
| 6 Month | 30-Nov-23 | 12113.00 | 21.13% | – | 18.02% | 13/38 |
| YTD | 01-Jan-24 | 11246.20 | 12.46% | – | 10.44% | 13/38 |
| 1 Year | 30-May-23 | 14221.00 | 42.21% | 42.07% | 36.96% | 8/34 |
| 2 Year | 30-May-22 | 17195.10 | 71.95% | 31.08% | 25.09% | 4/29 |
| 3 Year | 28-May-21 | 19822.30 | 98.22% | 25.54% | 19.06% | 4/24 |
| 5 Year | 30-May-19 | 24917.60 | 149.18% | 20.01% | 18.42% | 6/23 |
| 10 Year | 30-May-14 | 46478.80 | 364.79% | 16.59% | 16.20% | 8/17 |
| Since Inception | 01-Jan-13 | 61774.90 | 517.75% | 17.29% | 19.99% | 20/39 |
Risk Ratios (as of April 2024)
- Standard Deviation: 11.43 (Low volatility compared to the category average of 11.84)
- Beta: 0.9 (Indicates lower volatility relative to the market, with the category average at 0.94)
- Sharpe Ratio: 1.62 (Better risk-adjusted returns compared to the category average of 0.99)
- Treynor’s Ratio: 0.21 (Higher risk-adjusted returns than the category average of 0.13)
- Jensen’s Alpha: 7 (Indicates superior performance relative to the expected market returns, with the category average at -0.05.)
Disclaimer: The information provided in this article is for educational and informational purposes only. It should not be considered investment advice or a recommendation to invest in any particular mutual fund or asset class. Past performance does not indicate future results, and investors should research and consult with a financial advisor before making investment decisions. Investing in mutual funds involves risks, including the possible loss of principal invested.
