HDFC Flexi Cap Fund:Creating a corpus of Rs 2 crore with a monthly investment of just Rs 1100 or turning a lump sum investment of Rs 1 lakh into a corpus of Rs 1.95 crore is no mean feat. An equity scheme of HDFC Mutual Fund has done this wonders for its investors. The name of this scheme is HDFC Flexi Cap Fund, which has consistently outperformed the benchmark during its 29-year journey. HDFC Flexi Cap Fund is an open-ended dynamic equity scheme that invests in stocks across large cap, mid cap and small cap segments. Being an equity scheme, at least 65% of this scheme is always invested in shares. The past figures of its returns show how successful the investment strategy of this scheme has been.
Past Performance of HDFC Flexi Cap Fund
This scheme has given better returns than its benchmark index (NIFTY 500 TRI) over the last 29 years on lump sum investments over different periods:
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1 Year Return on Lump Sum Investment: 45.76% (Benchmark: 41.27%)
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3 Year Return on Lump Sum Investment: 25.67% (Benchmark: 18.42%)
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5 Year Return on Lump Sum Investment: 24.83% (Benchmark: 22.25%)
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10-year return on lump sum investment: 15.96% (benchmark: 15.47%)
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Return on lump sum investment since inception (29 years): 19.38% (Benchmark: 13.02%)
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How to become 1.95 crore from 1 lakh
If an investor has invested Rs 1 lakh in HDFC Flexi Cap Fund, then you can see here what will be his fund value according to different investment periods:
Value of investment of Rs 1 lakh:
- In 1 year: Rs 1,46,066
- In 3 years: Rs 1,98,616
- In 5 years: Rs 3,03,471
- In 10 years: Rs 4,40,220
- Since inception (in 29 years): Rs 1,95,03,950 (Rs 1.95 crore)
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Fund of Rs 2 crore from SIP of Rs 1100
HDFC Flexi Cap Fund has turned a monthly SIP of just Rs 1100 into a corpus of more than Rs 2 crore. You can see its calculation here:
SIP return calculation
- Monthly SIP: Rs 1100
- Investment period: 29 years
- Total amount invested through SIP in 29 years: Rs 3,82,800
- Annulized return on SIP in 29 years: 21.81%
- Fund value after 29 years: Rs 2,05,33,160 (Rs 2.05 crore)
(Source : Value Research SIP Calculator)
This performance of the scheme shows how long term wealth creation can be done through regular investments in mutual funds. However, past figures of returns in mutual funds cannot be considered as a guarantee of giving similar returns in future.
Also read: SBI Contra Fund turned Rs 1 lakh into Rs 1 crore, the money doubled in 3 years and almost 4 times in 5 years, what is special in this scheme?
Important things related to HDFC Flexi Cap Fund
– Assets Under Management (AUM): Rs 64,783.51 crore
– Benchmark: NIFTY 500 Total Return Index
– Risk Level: Very High
– Minimum SIP: Rs 100
– Start of Scheme: 01/01/1995
– Expense Ratio (Regular Scheme): 1.43%
– Expense Ratio (Direct Scheme): 0.77%
– Exit Load: 1% if sold within 1 year, no exit load after 1 year.
– Fund Manager: Roshni Jain, 16 years of experience in equity fund management
– Value Research Rating: 4 stars
Also read: What is the meaning of Trigger SIP, how does this strategy work, for whom is this method of investment better?
HDFC Flexi Cap Fund: Top 10 Equity Holdings
1. HDFC Bank : 9.42%
2. ICICI Bank : 9.23%
3. Axis Bank: 8.56%
4. HCL Technologies : 4.83%
5. Cipla: 4.80%
6. Bharti Airtel: 4.78%
7. Kotak Mahindra Bank : 4.62%
8. SBI Life Insurance Co : 4.46%
9. Maruti Suzuki India : 4.20%
10. Piramal Pharma: 2.47%
Also read: FD vs Hybrid Mutual Funds: Want a better option than FD with less risk? These 11 conservative hybrid funds gave up to 19% returns in 1 year
Investment Strategy of HDFC Flexi Cap Fund
HDFC Flexi Cap Fund, as per its name, follows a flexible investment strategy. Under this, this fund invests in companies with different market caps. As of September 30, 2024, 74.7% of this fund was invested in large cap stocks, while 2.5% was invested in midcap and 9.8% in small cap.The objective of this strategy is to give high returns to its investors in the long term and achieve the goal of wealth creation. Be it lump sum investment or SIP, this scheme has given high returns to investors in both the ways. But being an equity scheme and investing in every segment of the market, its risk level is very high. Therefore, before deciding to invest money in this, please assess your risk taking ability.
(Disclaimer: The purpose of this article is only to provide information, not to give advice on investing in any fund. Take any investment decision only after taking the advice of your investment advisor.)