HDFC Mid-Cap Opportunities Fund is an open-ended mid-cap equity scheme that aims to generate long-term capital appreciation by investing majorly in equity and equity related securities of mid and small-cap companies. This fund is one of the most recommended funds in its own category as being a mid-cap fund it does not bear much risk with it. It has impressed its investors with the risk management potential during severe market downturns. To attain the risk abatement, the fund manager, Mr. Chirag Setalvad, has tried to diversify the portfolio as much as it was required. Let us see how the fund has been performing by taking a glimpse at the past performance of the fund.

A Glimpse at the Performance

Calendar Year Returns-

Let us compare the fund’s annual returns with that of its own category (Equity Mid-Cap) to track its performance since 2008.

From the above table it is clear that the fund undoubtedly couldn’t bear the bearish market of 2008 and 2011, but still even in those times it didn’t fall as bad as its peers. Except for the years 2015 and 2017, it has outperformed its category with a good difference in all the years. Because of its consistent performance, it has been awarded with an analyst rating of Gold on Morningstar and a four-star rating on Value Research.

This fund is one among the top funds in mid-cap space. Mr. Chirag Setalvad has been putting his sincere efforts in achieving better returns every time, since the launch of the fund in 2007. As it is well-known that mid-cap funds are the most volatile across the Indian market, therefore hdfc midcap opportunities fund growth requires high skills to manage the asset allocation of the fund by the fund manager. Mr. Setalvad implements detailed and exhaustive research so as to gain in-depth knowledge about the companies before investing.

Trailing Returns-

Comparing the trailing returns of the fund with NIFTY Mid-Cap 100, TRI taken as its benchmark, it’s clear that the fund has successfully outperformed its benchmark in short as well as long period. This shows the hard and disciplined efforts placed by Mr. Setalvad. The fund size has grown over Rs.19000 cr as on February 28, 2018 from Rs.10,000 cr in 2016 which shows its growth trajectory in long-term.

HDFC Mid-Cap Opportunities Fund Growth- Portfolio Composition

The Fund has large Assets Under Management of Rs.19,891 cr as on February 28, 2018, thereby becoming the biggest actively managed mid-cap fund. This huge AUM speaks a lot about the fund’s consistent performance and investors trust in fund management. 95.26% of its assets are invested in equity and equity related securities and only 5.13% assets are invested in debt instruments. It has now an average market capitalization of Rs.11902.51 cr with a percentage break up of 8.26%, 82.76% and 8.98% in large, mid and small-cap companies. It contains a mix of 72 stocks in its basket of which top 3 stocks makes 42.09% of the portfolio. Percentage breakup of sector allocation of the fund as compared to NIFTY Mid-Cap 100 TRI taken as its benchmark is shown below:

% Allocation of Stocks:

It can be seen from the above bar chart that contrary to its benchmark fund is overweight in financial and healthcare sectors and underweight in engineering, automobile and consumer goods.

Who Should Invest in HDFC Mid-Cap Opportunities Fund G?

This fund is the best pick for all the investors who have a strong taste for growth-style investing and a long horizon to gain higher returns, and possess an understanding towards short-term market risk. This is a top performing fund from the mid-cap category and it focuses on all opportunities available the market. The past performance of the fund has revealed that it has taken full advantage of the bull market and proffered more than 50% returns to its investors. Those investors who have a strong affinity towards mid-cap stocks and do not fear risk taking can undoubtedly invest in this fund.

Read this post to know about the portfolio aggregation and performance of the HDFC Mid-Cap Opportunities Fund.

Author's Bio: 

Dishika is a financial expert, associated with MySIponline, has an experience of more than 7 years in mutual fund industry. She researches and writes about the top performing mutual funds.