HDFC Mid Cap VS HDFC Small Cap mutual fund comparison: Mid-Cap returns 52% while Small Cap 38% in last one year

HDFC Mid Cap Index Fund started on June 25, 2007, and offers strong returns with a balanced investment in large, mid, and small-cap stocks. It demonstrates lower volatility and a superior risk-adjusted return profile, making it suitable for investors seeking high returns with controlled risk.

HDFC Small Cap Index Fund started on April 3, 2008, provides very high returns, particularly in bull markets, due to its significant allocation to small-cap stocks. However, it carries higher volatility and risk, which can lead to substantial losses in bearish markets. This fund is ideal for investors with a high-risk tolerance looking for long-term capital appreciation.



HDFC Mid Cap Index Fund

HDFC Small Cap Index Fund

  • Category: Mid Cap Fund
  • Investment in Domestic Equities: 91.7%
    • Large Cap: 5.36%
    • Mid Cap: 52.27%
    • Small Cap: 14.98%
  • Suitable For: high returns over a 3-4 year horizon with moderate risk tolerance.
  • Crisil Rank Change: Improved from 5 to 4 in the previous quarter.
  • Portfolio Turnover Ratio: 20.82% (Category Avg: 231.77%)
  • Equity Holdings: 91.7%
  • Top Sectors: Hotels, Tyres, Life Insurance, Private Sector Banks, Pharmaceuticals.
  • Category: Small Cap Fund
  • Investment in Domestic Equities: 91.28%
    • Large Cap: 4.06%
    • Mid Cap: 3.48%
    • Small Cap: 66.7%
  • Suitable For: very high returns over a 3-4 year horizon, willing to accept higher risk.
  • Crisil Rank Change: 4
  • Portfolio Turnover Ratio: 10.80% (Category Avg: 120.19%)
  • Equity Holdings: 91.28%
  • Top Sectors: IT Services, Public Sector Banks, Software & Consulting, BPO/KPO, Hospitals.

HDFCs Mid Cap and Small Cap Index Fund Performance Comparision

Period HDFC Mid Cap Fund HDFC Small Cap Fund
1 Month 2.48% (Rank: 15/30) -2.27% (Rank: 29/29)
1 Year 51.92% (Annualised: 51.74%, Rank: 10/30) 38.28% (Annualised: 38.16%, Rank: 21/26)
2 Years 91.52% (Annualised: 38.33%, Rank: 3/26) 82.97% (Annualised: 35.21%, Rank: 7/25)
5 Years 202.91% (Annualised: 24.78%, Rank: 8/23) 179.24% (Annualised: 22.77%, Rank: 19/21)
Since Inception 1575.71% (Annualised: 18.10%, Rank: 19/30) 1131.18% (Annualised: 16.80%, Rank: 18/28)


HDFCs Mid Cap and Small Cap Index Funds Risk Ratios

Metric HDFC Mid Cap Fund HDFC Small Cap Fund
Standard Deviation 12.84 (Low volatility) 13.51 (High volatility)
Beta 0.89 (High volatility) 0.86 (High volatility)
Sharpe Ratio 1.58 (Better risk-adjusted returns) 1.63 (Better risk-adjusted returns)
Treynor’s Ratio 0.23 (Better risk-adjusted returns) 0.26 (Better risk-adjusted returns)
Jensen’s Alpha 2.99 (Better risk-adjusted returns) 4.25 (Better risk-adjusted returns)


Both funds offer substantial returns, but they cater to different risk appetites. Investors should choose based on their risk tolerance and investment horizon. For those willing to accept higher risk for potentially higher returns, the HDFC Small Cap Index Fund is preferable. Conversely, the HDFC Mid Cap Index Fund is more suitable for those seeking high returns with moderate risk.

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 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.