HDFC Diversified Equity All Cap Active FOF Regular Growth

All Cap

Diversified

Equity

India Growth

Others

Aggressive growth Investor Profile

Investor Profile

4–7 yearsInvestment Horizon

HNI, UHNI, Retail Investor, Mass AffluentTarget Segments

SEBI registered equity mutual fund suitable for all investor categoriesRegulatory Fit

Hdfc Diversified Equity All Cap Active Fof Growth Plan invests across all company sizes in India for flexible growth.

What This Strategy Does

HDFC Diversified Equity All Cap Active FOF Regular Growth is an equity flexi-cap fund which captures India's broad-based economic growth through a diversified, multi-cap portfolio construction, deploying capital across financials, consumer cyclicals, and industrials to achieve benchmark-aligned compounding.

CW Expert Research Notes

Resilient Downside Protection

The fund's consistent outperformance in 10 of the past 12 years demonstrates its ability to deliver resilient downside protection across market cycles.

Differentiated Sector Positioning

The fund's overweight exposure to the financialServices sector and underweight positioning in the technology sector relative to peers reflects a differentiated sector allocation strategy.

Earnings Revision Tailwind

With a tilt towards cyclical sectors like consumerCyclical and industrials, the fund is well-positioned to benefit from an anticipated earnings revision tailwind.

Performance and Risk Analysis

Historical returns, volatility patterns, and how this fund has performed relative to its benchmark.

Fund Performance

0.0% AnnuallyAlpha

+0.0% vs +0.0% benchmarkSince Inception

+0.0% vs +0.0% benchmark3Y Annualized

+0.0% vs +0.0% benchmark5Y Annualized

HDFC Diversified Equity All Cap Active FOF Regular Growth

Benchmark Index

Benchmark Performance Comparison

Hdfc Diversified Equity All Cap Active Fof

NIFTY 50 + FD Returns

Detailed Risks

Market Risk

Potential economic slowdown in India could dampen consumer demand, impacting fund holdings.

Liquidity Risk

High mid-cap exposure could face liquidity stress during market sell-offs.

Concentration Risk

Concentrated exposure to Indian equities leaves fund vulnerable to domestic risks.

Specific Strategy Risk

Regulatory changes impacting India's fund industry could disrupt investment strategy.

Strategy Details

A closer look at the investment thesis, portfolio construction, and current holdings.

Core Investment Theme

Provides diversified exposure across market capitalizations, allowing the fund to dynamically allocate toward the best opportunities. This flexibility enables capturing growth from emerging small and mid-caps while maintaining stability through established large-cap leaders. The impact is a balanced portfolio that can navigate varying market conditions.

Broader Market View

Market Outlook

Equity markets appear to be entering a mid-cycle phase, with consumption and earnings recovering from pandemic lows. This normalization, coupled with a revival in capital expenditure and credit growth, presents an attractive entry point. However, risks such as margin pressures and cyclicality in sectors like consumer discretionary and industrials warrant a balanced approach.

Why This Strategy is Attractive Now

The strategy seems well-positioned for the current environment, with exposure to consumer cyclicals, financials, and technology. The portfolio's diversification across market leaders and approximately 70 holdings could provide a balance of growth and stability. Additionally, the moderate beta and flexibility to adapt suggest a risk-adjusted approach aligned with this market phase.

Investment Style & Process

Investment Style

The portfolio exhibits characteristics of a Quality Growth strategy, emphasizing companies with durable competitive advantages, consistent earnings growth, and reasonable valuations relative to their long-term potential.

Why it Makes Sense

In the current market environment characterized by economic uncertainty and elevated volatility, a Quality Growth approach can provide exposure to companies with resilient business models and pricing power, potentially offering a degree of defensiveness.

High-Level Investment Process

Sourcing: The strategy appears to focus on companies with strong fundamentals, including robust cash flow generation, high returns on invested capital, and sustainable competitive advantages. Selection: The process suggests a preference for businesses with visible earnings growth trajectories, attractive reinvestment opportunities, and reasonable valuations relative to their long-term growth prospects. Construction: The portfolio construction is consistent with a diversified approach across sectors and market capitalizations, potentially mitigating concentration risk while maintaining a quality growth orientation.

Portfolio Holdings Overview

SectoralAllocation

Capital Goods15.52%

Consumers21.33%

Services15.5%

Financial Services32.81%

Technology7.25%

Utilities2.53%

Energy & Infra5.07%

Geographic Allocation

Domestic100%

Top Stock Holdings

CompanySectorAllocation

HDFC Large Cap Dir GrUtilities32.56%

HDFC Flexi Cap Dir GrUtilities25.09%

HDFC Large and Mid Cap Dir GrUtilities16.03%

HDFC Small Cap Dir GrUtilities13.47%

HDFC Multi Cap Dir GrUtilities9.23%

Treps - Tri-Party RepoUtilities3.93%

Net Current AssetsUtilities-0.32%

Fund House Management

The asset management company’s track record, AUM scale, and fund manager credentials.

Fund Manager Track Record

Dhruv Muchhal

Mr. Dhruv Muchhal has experience of 13 years. Manages 345 funds at HDFC Asset Management Co Ltd with an AUM of approximately ₹4,43,585 Cr Holds a B.Com degree.

32 years

Combined Team Experience

₹ 6,84,584 Cr

Assets Under Management

Srinivasan Ramamurthy

Co-Portfolio Manager

Mr. Srinivasan Ramamurthy has experience of 18 years. Manages 67 funds at HDFC Asset Management Co Ltd with an AUM of approximately ₹2,40,998 Cr Holds a M.B.A. degree.

CW Expert Take

HDFC AMC brings institutional rigour to focussed investing. Their strength lies in process consistency, whether managing large-cap equity or credit strategies, they maintain disciplined frameworks that have weathered multiple market cycles. The fund house benefits from deep research capabilities and a stable investment team that translates macro insights into portfolio positioning.

Investment Philosophy & Approach

Disciplined Approach

HDFC AMC follows a disciplined investment approach focused on rigorous research.

Risk Management

Risk management is embedded in the investment process through robust controls.

Long-Term Perspective

The fund house takes a long-term perspective in capital allocation decisions.

Operational & Regulatory Details

What it costs to invest, transaction mechanics, and regulatory disclosures you should know.

Costs and Fees

Total Expense Ratio (TER)1.28%

Regulatory & Tax Information

INF179KC1JR0

ISIN

DailyDealing Frequency

LTCG | >1Year 12.5%% on gain above 1.25 Lakh

STCG | <1Year 20%%

Tax Implications (India)