Journey of HDFC Mid-Cap Opportunities Fund

In the world of MF investing, where various parameters/statistics are monitored by investors and advisors, one statistic sometimes goes unnoticed i.e. the scheme vintage (number of years that the scheme has been in existence). As you may be aware, HDFC Mutual Fund has numerous schemes which have been in existence for a long time. One such fund is HDFC Mid-Cap Opportunities Fund, which completed 16 years recently, on 25th June 2023.

Since its launch on 25th June 2007, HDFC Mid-Cap Opportunities Fund has witnessed various economic and market cycles to create wealth over the long term.

Long-term wealth creation Resilience during market downswings Growth in Fund size has not resulted in change in investing style Investment Approach of HDFC Mid-Cap Opportunities Fund is as under Salient features of HFDC Mid-Cap Opportunities Fund

Rs 10,000 invested in the Scheme at inception would have become ~ Rs 1.19 lakhs at 16.7%% CAGR as of 30th June 2023, vs ~ Rs 0.83 lakhs at 14.1% CAGR for benchmark (NIFTY MidCap 150 TRI) (For Complete details, scroll down)

Note: Past Performance may or may not be sustained in future.

Resilience during market downswings

HDFC Mid-Cap Opportunities Fund has shown better resilience during market downswings too, as can be seen from the table below

Growth in Fund size has not resulted in change in investing style

HDFC Mid-Cap Opportunities Fund has grown in size over the years. However, this has not resulted in change in portfolio management approach. For instance, the portfolio breadth (number of companies) and concentration (top 10%) has been close to the long-term average, even as the fund size has increased materially.

Source: MFI Explorer

In view of the long history of wealth creation investing approach and style, HDFC Mid-Cap Opportunities Fund presents a viable investment avenue for investors.

Investment Approach of HDFC Mid-Cap Opportunities Fund is as under

To follow a stock specific approach
Bottom-up portfolio construction
Focus on good quality companies at acceptable valuations
Long term orientation (resulting in low portfolio turnover)
Identifying companies with sound financial strength and sustainable business models, with reasonable growth prospects

Salient features of HFDC Mid-Cap Opportunities Fund

Opportunity to invest in a portfolio of predominantly mid sized companies
Aims to provide diversification to an investor’s overall equity mutual fund portfolio
Experienced fund management and research teams with a track record of managing equity assets across market cycles
Emphasis on risk management – portfolio diversification across stocks and sectors; focus on good quality businesses

With a long track record of 16 years, HDFC Mid-Cap Opportunities continues to present a viable investment avenue for investors looking to invest in the mid-cap segment. While, by itself, the vintage of the fund (number of years completed) does not convey much, it assumes relevance if the fund has been managed with the same investing philosophy and style over the years. HDFC Mid-Cap Opportunities Fund has been managed by the same fund manager (Mr Chirag Setalvad) since inception and more importantly, has been managed with the same investment philosophy over the years.