HDFC Flexi Cap Fund: 30 Years of High Return Wealth Creation:HDFC Flexi Cap Fund has completed 30 years of consistently delivering high returns to its investors. Launched on January 1, 1995, this scheme has given annual returns of 21.41% on SIP and 19.13% on lump sum investment in the last three decades. What it means to give such high returns for three decades, you can also guess from the fact that if an investor has invested Rs 2000 in HDFC Flexi Cap Fund every month through Systematic Investment Plan (SIP) since its inception. , then his fund value would have reached Rs 4.13 crore on a total investment of Rs 7.18 lakh. At the time of launch, the fund value of a lump sum investment of Rs 1 lakh would have been around Rs 1.88 crore.
HDFC Flexi Cap Fund: SIP Return Calculation
- Monthly SIP: Rs 2000
- Total amount invested through SIP in 30 years: Rs 7.18 lakh
- Annualized Return (CAGR) on SIP in 30 years: 21.41%
- Fund value of SIP investment in 30 years: Rs 4.13 crore (as on 29 November 2024)
This scheme of HDFC Mutual Fund has given excellent returns even to those who made lump sum investments. If an investor had invested a lump sum of Rs 1 lakh in this scheme at the time of launch, then his fund value would now be more than Rs 1.88 crore. In the calculation table issued by AMC, you can see the information about the value of a lump sum investment of Rs 10,000 in different periods. You can calculate the value of a lump sum investment of Rs 1 lakh by increasing one zero in the fund value of the scheme given in the table.
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Tried scheme of HDFC Mutual Fund
HDFC Flexi Cap Fund is actually one of the oldest and tried equity schemes of HDFC Mutual Fund. How much trust this scheme has from investors can be known just by looking at the Asset Under Management (AUM) of this scheme of Rs 66,612.56 crore. This is the fourth equity scheme of HDFC Mutual Fund, which has completed a journey of 30 years. During this period, the fund has successfully navigated many market cycles and has set an example of long-term wealth creation for investors.
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Investment Strategy of HDFC Flexi Cap Fund
HDFC Flexi Cap Fund It is identified as a dynamic equity scheme investing in large-cap, mid-cap and small-cap companies. The investment strategy of this fund is based on focusing on good quality companies, investing money at the right valuation and long-term positioning. Bottom-up stock selection plays a major role in the success of the fund’s investment strategy. In this, priority is given to those companies which are strong growth drivers in the medium to long term. But whose shares are currently available at good valuation. A company is included in the portfolio of the scheme only after studying the industry and business cycle in depth. The fund aims to achieve better returns by investing in high quality stocks at the right valuations.
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4 important things about risk management of the scheme
The fund manager of HDFC Flexi Cap Fund pays attention to these 4 key things for better risk management of the portfolio:
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Adherence to regulatory and internal risk guidelines.
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Investment process based on quantitative and qualitative research.
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Emphasis on strategic positioning while preparing portfolio
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Flexibility in market capitalization and diversification across sectors.
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Focus on long-term value delivery
HDFC AMC Navneet Munot, MD & CEO of HDFC Flexi Cap Fund, said on the completion of 30 years of the scheme, “The journey of HDFC Flexi Cap Fund so far is a testament to our disciplined investment philosophy and commitment towards wealth creation for investors. This fund has grown stronger across multiple market cycles and reflects the stability of our investment process. “This milestone motivates us to focus on delivering long-term value for our investors.”
Roshi Jain, Senior Fund Manager, HDFC AMC said, “We are proud to help investors in wealth creation through HDFC Flexi Cap Fund. Selection of high quality businesses and focus on their growth drivers is the basis of wealth creation for investors. We will continue to work to deliver better risk-adjusted returns through a balanced and diversified approach.”
Who should invest in HDFC Flexi Cap Fund?
HDFC Flexi Cap Fund has been providing stable and attractive returns to its investors in different market cycles for the last 3 decades. This scheme has won the trust of investors by presenting a great example of wealth creation in the last 30 years. The special thing is that this scheme has consistently given better results crossing all types of market cycles. If you want to get full benefit of investing in equity scheme, then money should be invested for long term. Investing through SIP provides the benefit of averaging, which also helps in reducing market risk. But due to mainly investing in equity, market risk is always associated with this scheme. This is the reason why it has been kept in the Very High Risk category on the Riskometer. Therefore, only those people should invest in it, who are ready to take more risk for better returns.
(Disclaimer: The purpose of this article is only to provide information and not to advise investment in any fund. The past returns of any equity fund do not guarantee that it will continue in future. Decisions related to investment should be taken only after taking the opinion of SEBI authorized investment advisor. )
