Unlock the Secret to 26.6% Returns: The Shocking Truth About HDFC Large and Mid Cap Fund

HDFC Large and Mid Cap Fund has been making waves in the investment world with its impressive 26.6% returns over the past five years. But what sets this fund apart from its peers, and should you consider investing in it? In this article, we will delve into the world of HDFC Large and Mid Cap Fund and explore its secrets to success.

Earlier known as HDFC Growth Opportunities, this fund underwent a significant transformation in 2018 when it shifted from a large-cap bias to a large- and mid-cap mandate. This change in strategy allowed the fund to diversify its portfolio and tap into the growth potential of mid-cap stocks. Today, the fund maintains a balanced portfolio with an almost equal split between large caps and mid/small caps.

So, what drives the investment philosophy of HDFC Large and Mid Cap Fund? The fund's managers are on the lookout for businesses with distinct competitive advantages, superior financial strength, and the potential for unlocking value. This approach allows them to identify companies that are well-positioned for long-term growth and can weather market fluctuations.

But is this approach enough to justify investing in HDFC Large and Mid Cap Fund? To answer this question, let's take a closer look at the fund's performance over the past five years. With returns of 26.6%, the fund has outperformed many of its peers and has proven itself to be a consistent performer. However, past performance is not always a guarantee of future success, and it's essential to consider other factors before making an investment decision.

One of the key factors to consider is the fund's risk profile. As a large- and mid-cap fund, HDFC Large and Mid Cap Fund carries a moderate to high risk. This is because the fund invests in a mix of large-cap and mid-cap stocks, which can be volatile. However, the fund's managers have a proven track record of managing risk and have implemented various strategies to mitigate potential losses.

Another factor to consider is the fund's expense ratio. With an expense ratio of around 1.5%, HDFC Large and Mid Cap Fund is slightly more expensive than some of its peers. However, this cost is justified by the fund's strong performance and the expertise of its managers.

So, should you invest in HDFC Large and Mid Cap Fund? If you're looking for a fund that offers a balanced portfolio and the potential for long-term growth, HDFC Large and Mid Cap Fund may be worth considering. However, it's essential to remember that investing in the stock market always carries some level of risk, and it's crucial to do your research and consider your own financial goals and risk tolerance before making a decision.