HDFC Large and Midcap Fund

Fund In Brief

The Fund’s investments comprise 48.99% in large-cap, 41.44% in mid-cap, and 4.14% in small-cap stocks. The portfolio is diversified across sectors comprising financials, energy, FMCG, technology, etc. Some of the stocks in the portfolio comprise ICICI Bank, State Bank of India, Infosys Technologies, and Reliance Industries.

HDFC Large and Midcap Fund is available in 4 categories:

• Direct – Growth
• Direct – Income Distribution cum Capital Withdrawal (IDCW) As and When
• Regular – Growth
• Regular – IDCW As and When

Under IDCW, HDFC Large and Midcap Fund offers only annual frequency payment depending on when distributable surplus is available based on extant SEBI guidelines.

The direct plan refers to the plan in which investors purchase mutual fund units directly from the Fund. In contrast, a Regular plan refers to the plan in which investors purchase mutual fund units through the agent network. Both the plans would have a standard portfolio.

Investment Facts

Investment Objective

HDFC Large and Midcap Fund aims to create long-term wealth by investing in a combination of large and mid-cap companies. It provides a flexible investment opportunity to the fund management team to invest in companies of varying sizes and gains. The Fund operates under HDFC Asset Management Company, a Fund House that has strived to create long-term wealth for its investors for decades.

Fund Summary

1. HDFC Large and Midcap Fund Direct Plan-Growth

   • Risk level-Very High
   • NAV-Rs.167.77 as of 02.07.2021 (As of 31-May-2021)
   • Expense Ratio-1.78% (As of 31-May-2021)
   • Fund Started-01.01.2013

2. HDFC Large and Midcap Fund Direct Plan IDCW

   • Risk level-Very High
   • NAV-Rs.26.693 as of 02.07.2021 (As of 31-May-2021)
   • Expense Ratio-1.78% (As of 31-May-2021)
   • Fund Started-01.01.2013

3. HDFC Large and Midcap Fund Regular Plan-Growth

   • Risk level-Very High
   • NAV-Rs.164.751 as of 02.07.2021
   • Expense Ratio-2.48% (As of 31-May-2021)
   • Fund Started-18.02.1994

4. HDFC Large and Midcap Fund Regular Plan IDCW

   • Risk level-Very High
   • NAV-Rs.21.958 as of 02.07.2021
   • Expense Ratio-2.48% (As of 31-May-2021)
   • Fund Started-18.02.1994

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Fund Returns Summary

1. HDFC Large and Midcap Fund Direct Plan-Growth - Returns Summary

   Period	Returns Per Year (Annualized)
   6 Months	26.51%
   1 year	67.42%
   2 years	18.42%
   3 years	14.55%
   5 years	12.35%
   Since Inception	9.89%

2. HDFC Large and Midcap Fund Direct Plan IDCW - Returns Summary 

   Period	Returns Per Year (Annualized)
   6 Months	26.86%
   1 year	68.19%
   2 years	19.71%
   3 years	15.93%
   5 years	13.68%
   Since Inception	11.35%

3. HDFC Large and Midcap Fund Regular Plan-Growth - Returns Summary

   Period	Returns Per Year (Annualized)
   6 Months	26.47%
   1 year	67.36%
   2 years	19.27%
   3 years	15.60%
   5 years	13.43%
   10-years	10.41%
   Since Inception	11.98%

4. HDFC Large and Midcap Fund Regular Plan IDCW - Returns Summary

   Period	Returns Per Year (Annualized)
   6 Months	26.51%
   1 year	67.42%
   2 years	18.42%
   3 years	14.55%
   5 years	12.35%
   10-years	9.89%
   Since Inception	13.97%

Summative Pros and Cons 

Benefits of HDFC Large and Midcap Fund

Investment in HDFC Large and Midcap Fund provides several benefits to the investor over the long term. Some of them are:

• Wealth Creation Tool: The Fund is a proven tool for long-term investment. Investors can create wealth by investing in this Fund for a long period. Although the fund returns have underperformed its benchmark over the 5 to 7 years period, being an equity fund, one should invest in this Fund for five years and above.
• Equity Asset Class Benefit: The Fund provides the benefit of the equity asset class that performs better in inflation rate increase situations than traditional asset classes such as debt and gold.

Fund House Details

HDFC Large and Midcap Fund is housed under the Fund House, HDFC Mutual Fund. Its AMC is HDFC Asset Management Company Limited. 

Fund Managers:

• Mr Gopal Agrawal (since 16-Jul-2020)
• Mr Prashant Jain is the Chief Investment Officer of the Fund.

The promoter shareholders of the Fund House are:

• HDFC Ltd: 52.7% holdings
• Standard Life Investments Limited: 21.2% holdings

Who Should Invest In HDFC Large and Midcap Fund?

The objective of HDFC Large and Midcap Fund is to provide long-term capital wealth creation for its investors. The fund scheme is best suited for investors who seek:

1. Aggressive Investment Strategy

   The scheme aims to create wealth for its investors by maintaining a well-diversified portfolio of equity shares. It produces superior risk-adjusted returns by investing in a judicious blend of large-cap and mid-cap companies in the domestic equity space.

2. Long-term wealth creation

   Investors who aspire to create wealth over an investment horizon of 5 years or more may invest in this fund scheme. The investor should be mentally equipped to withstand the price volatility that comes with the extra returns from such fund schemes.

In Conclusion

HDFC Large and Midcap Fund is a combination of a large-cap and mid-cap Fund. If one is ready to invest for five years or more, one should expect to beat the inflation rate comfortably and surpass the returns from fixed deposits. Since one expects higher returns in the long term, one should be ready to face a lot of price volatility during the investment tenure.

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