Mutual Fund Comparison: HDFC Mid Cap vs HDFC Nifty 50 Index, grows 51.7% and 22.5% in last one year

HDFC Nifty 50 Index Fund from 2002 offers a relatively safer investment option with exposure to large-cap stocks, resulting in lower volatility and steady returns. Its performance closely tracks the Nifty 50 Index, making it suitable for conservative investors seeking lower-risk market returns.

HDFC Mid Cap Index Fund since 2007 targets mid-cap stocks with strong growth potential, offering higher returns at the cost of increased volatility and risk. It has shown impressive performance, especially over longer investment horizons, and is suitable for investors with a higher risk appetite looking for significant capital appreciation.

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HDFC Nifty 50 Index Fund 

 HDFC Mid Cap Index Fund

  • Inception Date: July 18, 2002
  • Category: Large Cap Fund
  • Investment in Domestic Equities: 100.02%
    • Large Cap: 81.52%
    • Mid Cap: 3.24%
    • Small Cap: 0%
  • Fund Objective: returns closely corresponding to the total returns of the securities as represented by the Nifty 50 Index, subject to tracking errors.
  • Suitable For: diversified large-cap portfolio that tracks the Nifty 50 Index, seeking moderate returns with lower risk than mid- and small-cap funds.
  • Inception Date: June 25, 2007
  • Category: Mid Cap Fund
  • Investment in Domestic Equities: 91.7%
    • Large Cap: 5.36%
    • Mid Cap: 52.27%
    • Small Cap: 14.98%
  • Fund Objective: long-term capital appreciation by investing predominantly in mid-cap stocks, which are generally under-researched and under-valued compared to large-cap stocks.
  • Suitable For: high returns over a 3-4 year horizon with moderate risk tolerance, willing to accept moderate losses in the short term.

HDFC Mid Cap VS HDFC Index Fund Nifty 50 Plan – Performance Comparison

Returns

Period HDFC Nifty 50 Index Fund HDFC Mid Cap Fund
1 Week -1.76% -1.59%
1 Month -0.01% 2.48%
3 Months 2.77% 6.74%
6 Months 12.30% 20.69%
YTD 4.03% 12.82%
1 Year 22.54% 51.74%
2 Years 37.77% 91.52%
3 Years 47.90% 110.27%
5 Years 95.40% 202.91%
10 Years 236.82% 534.19%
Since Inception 1930.33% 1575.71%

HDFC Mid Cap VS HDFC Index Fund Nifty 50 Plan Risk Ratios

Metric HDFC Nifty 50 Fund HDFC Mid Cap Fund
Standard Deviation 11.86 (Low volatility) 12.84 (Low volatility)
Beta 0.99 (High volatility) 0.89 (High volatility)
Sharpe Ratio 0.79 (Better risk-adjusted returns) 1.58 (Better risk-adjusted returns)
Treynor’s Ratio 0.09 (Better risk-adjusted returns) 0.23 (Better risk-adjusted returns)
Jensen’s Alpha -0.39 (Better risk-adjusted returns) 2.99 (Better risk-adjusted returns)

HDFC Mid Cap VS HDFC Index Fund Nifty 50 Plan Portfolio Analysis (As of 30th April, 2024)

HDFC Nifty 50 Index Fund:

  • Portfolio Turnover Ratio: 7.56% (Category Avg: 28.74%)
  • Equity Holdings: 100.02%
  • Top Sectors: Private Sector Banks, Refineries & Marketing, Software & Consulting, Civil Construction, FMCG.
  • Top Holdings:
    • HDFC Bank Ltd. (11.48%)
    • Reliance Industries Ltd. (9.97%)
    • ICICI Bank Ltd. (8.11%)
    • Infosys Ltd. (5.09%)
    • Larsen & Toubro Ltd. (4.27%)

HDFC Mid Cap Index Fund:

  • Portfolio Turnover Ratio: 20.82% (Category Avg: 231.77%)
  • Equity Holdings: 91.7%
  • Top Sectors: Hotels, Tyres, Life Insurance, Private Sector Banks, Pharmaceuticals.
  • Top Holdings:
    • Indian Hotels Company Limited (4.23%)
    • Apollo Tyres Limited (3.37%)
    • Max Financial Services Ltd. (3.31%)
    • Federal Bank Ltd. (3.17%)
    • Ipca Laboratories Ltd. (3.15%)

Overall choosing these funds depends on the investor’s risk tolerance and return expectations. The HDFC Nifty 50 Index Fund is ideal for those seeking stable, market-correlated returns with lower risk. In comparison, the HDFC Mid Cap Index Fund suits those willing to accept higher risk for potentially higher returns.

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.