HDFC Mid Cap Opportunities Fund: A remarkable performance of 209% returns in last 5 years

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 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.

HDFC Mid Cap Opportunities Fund Growth:

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1-Year Performance:
Over the past year, the HDFC Mid-Cap Opportunities Fund Growth has exhibited robust growth, delivering a remarkable absolute return of 55.69%. This substantial return significantly outpaces both the category average and the benchmark, which stood at 51.33%. The fund’s ability to surpass market benchmarks underscores its adeptness in capitalizing on mid-cap opportunities and generating alpha for investors.

2-Year Performance:
The fund’s performance over a two-year horizon has been particularly impressive, recording an absolute return of 99.44%. This achievement highlights the fund’s consistent growth trajectory and strategic investment approach, which have enabled it to outperform the category average by a substantial margin. Investors who have remained invested in the fund over this period have witnessed substantial wealth appreciation, further affirming its potential for delivering long-term value.

5-Year Performance:
Over five years, the HDFC Mid-Cap Opportunities Fund has demonstrated robust growth, delivering an impressive absolute return of 209.31%. This performance significantly exceeds the category average and underscores the fund’s ability to navigate market cycles effectively while capitalizing on mid-cap opportunities. Moreover, the fund’s consistent outperformance over this extended period reflects its resilience and ability to generate wealth for investors across varying market conditions.

Image:moneycontrol                           5 YR GROWTH

HDFC Mid Cap Opportunities Fund: Risk and Performance Metrics

  • Standard Deviation: The fund displays low volatility, with a standard deviation of 12.84, aligning closely with the category average.
  • Beta: With a beta of 0.89, the fund exhibits slightly lower volatility compared to the category average, indicating potential downside protection during market downturns.
  • Sharpe Ratio: The fund demonstrates superior risk-adjusted returns with a Sharpe Ratio of 1.58, outperforming the category average of 1.29.
  • Treynor’s Ratio: HDFC Mid-Cap Opportunities Fund-Growth excels in Treynor’s Ratio, indicating its ability to generate excess returns per unit of systematic risk assumed.
  • Jensen’s Alpha: The fund consistently outperforms its benchmark with a positive Jensen’s Alpha of 2.99, showcasing the fund manager’s skill in delivering superior returns beyond market expectations.

HDFC Mid Cap Opportunities Fund Portfolio Turnover Ratio

The HDFC Mid-Cap Opportunities Fund-Growth exhibits a moderate portfolio turnover ratio of 20.82%, indicating that the fund’s holdings are not traded frequently. In contrast, the category average turnover ratio is substantially higher at 231.77%. This suggests that the fund manager has a more conservative approach to portfolio rebalancing, preferring to hold stocks for longer durations rather than frequently rotating positions.

HDFC Mid Cap Opportunities Fund Asset Allocation:

  • Equity: The fund maintains a predominant allocation of 91.7% to equity securities, reflecting its focus on capturing growth opportunities within the mid-cap segment of the market.
  • Debt: There are no investments allocated to debt securities, indicating the fund’s emphasis on equity-driven growth strategies.
  • Others: The remaining 8.3% of the portfolio is allocated to other asset classes, which may include alternative investments or cash equivalents.

HDFC Mid Cap Opportunities Fund Equity Holding Details:

  • The fund holds a total of 71 stocks, slightly higher than the category average of 70.62. This diversified approach helps mitigate concentration risk and provides exposure to a broader range of investment opportunities.
  • Large Cap Investments account for 5.36% of the portfolio, indicating a selective approach to large-cap exposure.
  • Mid-cap investments represent the largest allocation at 52.27%, reflecting the fund’s primary focus on mid-cap stocks, which are typically characterized by higher growth potential.
  • Small Cap Investments constitute 14.98% of the portfolio, further diversifying the fund’s exposure across different market capitalizations.
  • Other Investments, comprising 19.09% of the portfolio, may include specialized sectors or thematic investments that complement the fund’s overall strategy.

HDFC Mid Cap Opportunities Fund Implications for Investors

The fund’s emphasis on mid-cap stocks, coupled with its low turnover strategy, may appeal to investors looking for stability and potential capital appreciation over the long term. However, investors should carefully assess their risk tolerance and investment objectives before allocating capital to the fund.

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 own 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.