HDFC Large and Mid Cap Fund

Diversified

Equity

India Growth

Large Cap

Others

Aggressive growth Investor Profile

Investor Profile

1–7 yearsInvestment Horizon

HNI, UHNI, Retail Investor, Mass AffluentTarget Segments

SEBI registered equity mutual fund suitable for all investor categoriesRegulatory Fit

What This Strategy Does

HDFC Large and Mid Cap Fund Growth is an equity fund which captures India's ₹200+ trillion market capitalization through a diversified portfolio spanning financials, industrials, and healthcare sectors to achieve broad-based earnings growth.

CW Expert Research Notes

Consistent Outperformance

The fund has demonstrated resilient benchmark-relative behavior, outperforming in 5 out of the past 11 years, suggesting a robust investment process capable of delivering consistent earnings across market cycles.

Differentiated Positioning

With a distinct overweight in the financials sector and a bias towards large and mid-cap stocks, the fund's portfolio construction deviates from peers, reflecting a high-conviction view on secular growth opportunities within these segments.

Balanced Risk Profile

Exhibiting a beta of 1.09 and a Sharpe ratio of 1.391, the fund offers investors a balanced risk-return proposition, participating in upside while providing downside protection through its disciplined investment approach.

Performance and Risk Analysis

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

Fund Performance

-2.0% AnnuallyAlpha

+13.9% vs +9.9% benchmarkSince Inception

+12.1% vs +6.3% benchmark3Y Annualized

+14.2% vs +6.5% benchmark5Y Annualized

HDFC Large and Mid Cap Fund

Benchmark Index

Benchmark Performance Comparison

Hdfc Large And Mid Cap Fund

NIFTY 50

Risk Profile

Standard Deviation18.8%

Maximum Drawdown-18.3% | Oct 2024

Sharpe Ratio-0.17

Beta1.01

Upside Capture101%

Detailed Risks

Market Risk

Potential recession in India driven by slowing global growth could undermine earnings.

Liquidity Risk

Volatility spikes could impair exits from mid-cap holdings, mitigated by large-cap bias.

Concentration Risk

Concentrated exposure to Indian banks facing asset quality issues, offset by diversification.

Specific Strategy Risk

Regulatory tightening on non-bank lending could pressure fintech holdings' growth trajectories.

Strategy Details

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

Core Investment Theme

Captures the growth potential of India's leading enterprises across market capitalizations. This flexible approach allows the fund to dynamically allocate capital toward the most compelling risk-reward opportunities, whether that's stability in large-caps or emerging winners in the mid-cap space.

Broader Market View

Market Outlook

Equity markets appear to be entering a recovery phase following the recent valuation correction. Consumption trends and earnings normalization, supported by accommodative credit conditions, are aligning favorably with the strategy's tilt towards consumer cyclicals, financials, and technology. While competitive pressures and cyclicality pose risks, this backdrop offers an attractive entry point.

Why This Strategy is Attractive Now

The strategy seems well-positioned to capitalize on the current environment through its balanced exposure across consumer, financial, and technology sectors. The portfolio's diversification across around 70 holdings, including market leaders, coupled with a moderate risk profile, aligns it with normalization tailwinds. This positioning stands to benefit from improving consumption and credit growth.

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 growth prospects.

Why it Makes Sense

In the current environment of moderating economic growth and elevated uncertainty, a Quality Growth approach focused on companies with pricing power, recurring revenue streams, and strong balance sheets can provide a degree of defensiveness while participating in secular growth opportunities.

High-Level Investment Process

Sourcing: The strategy appears to source investment ideas through a combination of quantitative screening for quality and growth characteristics, supplemented by fundamental research to identify companies with sustainable competitive advantages and attractive long-term growth prospects. Selection: The selection process suggests a preference for companies exhibiting above-average revenue and earnings growth, high returns on capital, robust free cash flow generation, and reasonable valuations relative to their growth profile and quality attributes. Construction: Portfolio construction is consistent with a multi-capitalization approach, maintaining a diversified yet conviction-weighted exposure across sectors with an emphasis on balancing risk through position sizing and managing factor exposures.

Portfolio Holdings Overview

SectoralAllocation

Financial Services30.44%

Capital Goods17.71%

Consumers17.21%

Services16.24%

Energy & Infra5.76%

Technology8.87%

Utilities3.78%

Geographic Allocation

Domestic100%

Top Stock Holdings

CompanySectorAllocation

HDFC Bank LtdFinancial Services4.01%

ICICI Bank LtdFinancial Services3.09%

Bharti Airtel LtdServices1.94%

Axis Bank LtdFinancial Services1.91%

State Bank of IndiaFinancial Services1.59%

Fortis Healthcare LtdServices1.55%

Max Financial Services LtdFinancial Services1.46%

Prestige Estates Projects LtdEnergy & Infra1.42%

Treps - Tri-Party RepoUtilities1.42%

Maruti Suzuki India LtdConsumers1.38%

Fund House Management

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

Fund Manager Track Record

Gopal Agrawal

Mr. Gopal Agrawal has experience of 20 years. Manages 19 funds at HDFC Asset Management Co Ltd with an AUM of approximately ₹2,15,942 Cr Holds a MBM degree.

34 years

Combined Team Experience

₹ 6,59,527 Cr

Assets Under Management

Dhruv Muchhal

Co-Portfolio Manager

Mr. Dhruv Muchhal has experience of 13 years. Manages 334 funds at HDFC Asset Management Co Ltd with an AUM of approximately ₹4,43,585 Cr Holds a B.Com 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 maintains 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)1.59%

Exit Load1

Regulatory & Tax Information

INF179KA1RT1

ISIN

DailyDealing Frequency

Nifty LargeMidcap 250 TR INRBenchmark

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

STCG | <1Year 20%%

Tax Implications (India)