HDFC Flexi Cap Fund Three Decades of Wealth Creation Journey

In the ever-evolving landscape of financial markets, few milestones reflect trust and resilience as strongly as reaching a 30-year milestone. On 1st January 2025, HDFC Flexi Cap fund will celebrate 30 glorious years of serving investors, a testament to its unwavering commitment which aims at wealth creation. The Fund is one of the oldest Schemes in the Mutual Fund industry and has under its fold a strong AUM base of ~ Rs. 66,304 Cr as of 29th November 2024. As we celebrate this milestone, we look back at the 30-year journey of wealth creation.

About the fund

HDFC Flexi Cap Fund is an open-ended dynamic equity scheme investing across large cap, mid cap and small cap stocks. The Fund has the flexibility to tactically increase or decrease the allocation to various market cap segments based on outlook / valuations etc.

The Journey

The Funds strategy has always been to invest in stocks/sectors that are reasonably valued and to avoid paying an aggressive price for a stock, and this approach has often led to being invested in stocks/sectors ahead of the market cycles. By positioning the portfolio to broadly capture the beneficiaries of the next market cycle with adequate conviction to hold on to it during tough times, the fund has been able to generate significant alpha over the long term.

A monthly SIP of Rs 10,000 in HDFC Flexi Cap Fund since its inception would have grown to Rs 20.65 Crore^ as on 29th Nov 2024
Rs 1,00,000 invested on inception date i.e. 1st Jan’95 would have grown to ~Rs 1.88 Crore^ at CAGR of 19.13% as on 29th Nov 2024.

Disclaimer: Returns as on 29th November, 2024. The above returns are of regular plan - growth option. In view of the individual circumstances and risk profile, each investor is advised to consult his / her professional advisor before making a decision to invest in the Scheme. ^Past performance may or may not be sustained in future and is not a guarantee of any future returns. HDFC Mutual Fund/AMC is not guaranteeing returns on investments made in the Scheme and/or should not be construed as an advice for investing in the above stocks/sectors. The Fund may or may not have any present or future positions in the Stocks/Sectors. For complete performance details, refer pages 6. For complete portfolio details refer www.hdfcfund.com

On an average it took ~4 Years to Double the NAV of HDFC Flexi Cap Fund

Note: The above NAV’s are of Regular plan - growth option. NAV as at November 29, 2024 ₹1883.672. Past Performance may or may not be sustained in future returns and is not a guarantee of any future returns. For complete performance in SEBI prescribed format, please refer page 6.

Below table shows the rolling returns of the Fund for different time periods since its inception. Interestingly, over a 5-year horizon, investment in HDFC Flexi Cap Fund has always yielded positive returns and in ~ 87% instances, returns exceeded 10% CAGR

Current Portfolio Positioning

As of 29th Nov 2024, ~74% of the assets are invested in Large-Caps.

HDFC Flexi Cap Fund is well positioned in sectors with prospects of earnings recovery with reasonable valuations and is generally underweight in expensive sectors. In the current environment, investors can consider allocation to HDFC Flexi Cap Fund.