HDFC Large and Mid Cap Fund Long Term Return:If common investors want to accumulate wealth by investing money in the stock market, then equity mutual funds are considered the best way to do so. HDFC Large and Mid Cap Fund, the equity scheme of HDFC Mutual Fund, has proved this to be true. The past performance of the direct plan of this scheme has been excellent. Be it lump sum investment or SIP, this scheme has given tremendous returns to many long term investors. This scheme has made one time investment three times in 5 years, almost 4 times in 10 years and more than 5 times in 12 years.
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The amount increased 3 times in 5 years, 4 times in 10 years and 5 times in 12 years.
HDFC Large and Mid Cap Fund’s Direct Plan has helped investors triple their wealth in one go, almost 4 times in 10 years and more than 5 times in 12 years. We are telling the figure of 12 years because this scheme was started on January 2, 2013, which is about to complete 12 years. If someone has invested a lump sum of Rs 1 lakh in this scheme, then you can see the details of how much profit he would have earned in different periods here:
Lump sum investment 5 years ago: Rs 1 lakh
Fund value after 5 years: Rs 2,94,283 (about 3 times)
Absolute Return: 194.28%, Annulized Return: 24.07%
Lump sum investment 10 years ago: Rs 1 lakh
Fund value after 10 years: Rs 3,90,370 (about 4 times)
Absolute Return: 290.37%, Annulized Return: 14.58%
Lump sum investment about 12 years ago (on January 2, 2013): Rs 1 lakh
Fund value after about 12 years: Rs 5,11,150 (more than 5 times)
Absolute Return: 411.15%, Annulized Return: 14.58%
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SIP Returns of HDFC Large and Mid Cap Fund
The Direct Plan of HDFC Large and Mid Cap Fund has also given good returns to those investing through Systematic Investment Plan (SIP). If you had invested Rs 10,000 in SIP every month during the last 5 years, the fund value would have almost doubled for a total investment of Rs 6 lakh.
Monthly SIP amount: Rs 10 thousand
Total investment through SIP in 5 years: Rs 6 lakh
Fund value in 5 years: Rs 11,94,612 (Rs 11.95 lakh)
Absolute Return: 99.1%, Annulized Return: 27.92%
Total investment through SIP in 10 years: Rs 12 lakh
Fund value in 10 years: Rs 32,96,782 (Rs 32.97 lakh)
Absolute Return: 174.73%, Annulized Return: 19.18%
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Key Features of the Scheme
HDFC Large and Mid Cap Fund is an equity-based scheme of HDFC Mutual Fund, one of the largest fund houses in the country, which mainly invests in Large Cap and Mid Cap stocks. At present, about 98.62% of the equity holding of this scheme is 37.4% invested in large cap, 28.8% in mid cap and 10.98% in small cap stocks. The asset under management (AUM) of HDFC Large and Mid Cap Fund is Rs 23,988.97 crore and Expense ratio is 0.88%. Due to majority of investment in equity, it has been kept in the Very High Risk category on the Riskometer.
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Top 10 stocks of portfolio
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HDFC Bank Ltd. (5.12%)
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ICICI Bank Ltd. (3.74%)
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Infosys Ltd. (2.58%)
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Axis Bank Ltd. (2.01%)
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Mphasis Ltd. (1.91%)
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IndusInd Bank Ltd. (1.56%)
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Tata Consultancy Services Ltd. (1.49%)
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State Bank Of India (1.47%)
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Bharti Airtel Ltd. (1.45%)
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Lupine Ltd. (1.30%)
Also read: Best Multi Asset Funds: Top 7 Multi Asset Funds gave returns up to 31% this year, how has been the performance in 5 and 10 years?
For whom is this scheme suitable?
HDFC Large and Mid Cap Fund can be a good option for those investors who are ready to take the risk associated with investing in equity for high returns. Like any other equity scheme, it is best to invest in this scheme for long term i.e. for 5 years or more. If investment is made through SIP, it helps in managing risk and achieving balanced returns amid market fluctuations.
(Disclaimer: The purpose of this article is only to provide information and not to advise investment in any fund. There is no guarantee that the past returns of equity mutual funds will continue in the future. Decisions related to investment should be taken only after taking the opinion of SEBI authorized investment advisor. .)
