HDFC Mutual Fund Multibagger Scheme: The direct plan of HDFC Focused 30 Fund has shown investors’ lump sum investment doubling in 3 years. Not only this, this scheme has tripled the investment made 5 years ago. Even this equity scheme has given excellent returns on investments made through Systematic Investment Plan (SIP). If seen from this perspective, this scheme of HDFC Mutual Fund can be called multibagger. But what is the main reason for the success of HDFC Focused 30 Fund? In which assets have its fund managers invested? We will know the answers to all the questions related to this fund of HDFC later, but first let’s take a look at the highlights and past returns of the scheme.
Returns on lump sum investment in HDFC Focused 30 Fund
Annualized Return on Lump Sum Investment in 3 Years (Direct Plan): 28.18%
Annual Return on Lump Sum Investment in 3 Years (Regular Plan): 26.51%
Annual Return on Lump Sum Investment in 5 Years (Direct Plan): 25.49%
Annualized Return on Lump Sum Investment in 5 Years (Regular Plan): 24.00%
Lump sum investment (Direct plan): Rs 1 lakh
Value of lump sum investment of Rs 1 lakh after 3 years (Direct Plan): Rs 2,10,601 lakh
Value of lump sum investment of Rs 1 lakh after 5 years (Direct Plan): Rs 3,11,204 lakh
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Returns on Monthly SIP in HDFC Focused 30 Fund
Annualized Returns on Monthly SIP in 3 Years (Direct Plan): 33.62%
Annualized Returns on Monthly SIP in 5 Years (Direct Plan): 32.21%
Value of Rs 5000 monthly SIP after 3 years (Direct Plan): Rs 2,90,224 (Investment Rs 1.80 lakh)
Value of Rs 5000 monthly SIP after 5 years (Direct Plan): Rs 6,60,362 (Investment Rs 3 lakh)
According to the above calculations, this scheme has also increased the investment made through SIP by 1.6 times in 3 years and more than double in 5 years.
(Source: AMFI, Value Research)
Also read: SBI MF Superhit Scheme: This fund of SBI increased the wealth 4 times in 5 years, also gave high returns on SIP
What is the investment strategy, how did you achieve success?
The basis of success of any mutual fund is its investment. If the investment decisions of the fund manager turn out to be correct, then the returns of the fund will be good. The success of HDFC Focused 30 Fund also shows that the investment strategy of its fund managers has been right. This is an equity fund. Therefore, it is necessary to invest at least 65% of its total assets in equity. As the name HDFC Focused 30 Fund suggests, this scheme follows a focused investment strategy and the maximum number of stocks in its portfolio is 30. But these 30 stocks can be of any size company. That means there is no investment restriction on this fund as per market cap. The advantage of this flexible policy is that the fund manager has complete freedom to take the right decisions keeping in mind the market conditions and trends. Due to which the chances of getting better returns in the long term increases.
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Asset allocation of the scheme
According to the updated data as of August 31, 2024, the share of equity in the portfolio of HDFC Focused 30 Fund was 86.23%, the share of cash and cash like assets was 9.74%, the share of real estate was 3.68% and the share of debt was 0.35%. Whereas in the equity portfolio of the scheme, the share of large cap was 81.34%, mid cap was 10.53% and small cap was 8.13%.
Top Holdings of HDFC Focused 30 Fund
- ICICI Bank: 9.44%
- HDFC Bank: 9.14%
- Axis Bank: 8.37%
- HCL Technologies: 4.89%
- SBI Life Insurance: 4.65%
Also read: Amazing SIP Return: Treasure worth Rs 3 crore opened with a small amount of Rs 1000! Miracle of 29 year old midcap fund
Important things related to HDFC Focused 30 Fund
- Benchmark: NIFTY 500 Total Return Index
- CAGR of benchmark index: 17.68% in 3 years, 22.13% in 5 years
- Assets Under Management (AUM): Rs 14,858.09 crore
- Risk Level: Very High
- Expense Ratio (Direct Plan): 0.50%
- Expense Ratio (Regular Plan): 1.67%
For whom is HDFC Focused 30 Fund right?
HDFC Focused 30 Fund can prove to be a better option for those investors who want to invest for the long term and are ready to take the risk of investing in equity for better returns. This fund has given excellent returns on lump sum and SIP investments in 3 and 5 years, due to which this scheme has become a favorite of investors. Value Research has also given this scheme a 5 star rating. But only those investors should invest in this scheme, who are prepared to invest for at least 5 years and whose risk appetite allows it. It should also be kept in mind that past returns of equity mutual funds cannot be considered as a guarantee of similar performance in future.
(Disclaimer: The purpose of this article is only to provide information, not to advise investment in any fund. Investments made in equity mutual funds are directly affected by the ups and downs of the stock market. Any investment decision should be taken by your investment advisor. Do it only after taking the opinion of.)