What is HDFC Life Flexi Cap Fund?
HDFC Life Flexi Cap Fund is a newly launched New Fund Offering (NFO) provided by HDFC Life. It falls under the category of a flexi-cap fund, which means it has the flexibility to invest across the market capitalization spectrum. This includes large-cap, mid-cap, and small-cap funds. This versatility allows the fund manager to make investments in companies based on their potential to generate returns, irrespective of their market size.
The fund uses a dynamic asset allocation strategy, which means that the asset allocation between equity and debt is adjusted based on the market outlook. This helps to reduce risk and maximize returns over the long term.
The fund is eligible for tax benefits under Section 80C of the Income Tax Act, 1961. This means that investors can deduct up to ₹1.5 lakhs from their taxable income for the amount invested in the fund.
Overall, HDFC Life Flexi Cap Fund is a good option for investors who are looking for a fund with the potential to generate high returns over the long term
Highlights of the HDFC Life Flexi Cap Fund
| Aspect |
Details |
| Investment Objective |
To generate capital appreciation/income from a portfolio, predominantly invested in equity & equity-related instruments. |
| Benchmark Index |
S&P BSE 500 |
| Risk Profile |
Moderate Risk |
| NFO Start Date |
Pre NFO: 29th September 2023
NFO Launch Date: 12 October 2023
Fund Launch: 26th October 2023 |
| Current NAV |
₹10 (as of 29th September 2023 till 25th October 2023) |
| Minimum Investment |
₹2,100/month (if buying HDFC Life Capital Guarantee Plan) |
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Reasons Why You Should Invest in HDFC Life Flexi Cap Fund
Here are the reasons why you should invest in HDFC Life Flexi Cap Fund:
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Strong Historical Performance: HDFC Life’s funds have demonstrated impressive performance over the last five years, with a return of 22%. This indicates a track record of delivering above-average returns, showcasing the fund's ability to generate wealth for its investors.
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Long-Term Growth Potential: The HDFC Life Flexi Cap Fund presents an opportunity for long-term capital appreciation. This indicates that the fund has the potential to provide stable and consistent growth over an extended period, aligning with investors' long-term financial goals.
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Additional Benefits with Click2Wealth: Investors can access the HDFC Life Flexi Cap Fund through Click2Wealth with no additional charges. Moreover, they enjoy an extra 1% allocation from the first month onwards. This not only helps in enhancing the investment value but also reduces initial costs associated with fund allocation.
People also read: HDFC Life Midcap Momentum Fund
Why are the Flexi Cap Funds a Smart Investment?
Investing in a Flexi Cap Fund is a smart choice for several reasons:
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Timely Switching between Market Caps: Switching between large-cap, mid-cap, and small-cap investments at the right time is a complex task. It requires a deep understanding of market trends and can impact overall performance. A Flexi Cap Fund is managed by professionals who have the expertise to make these switches strategically, potentially leading to higher returns.
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Identifying Strong Companies: Flexi Cap Funds focus on identifying companies with strong growth potential, effective management, and robust business models. This careful selection can contribute to the fund's overall performance.
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No Constraints on Stock or Sector Allocation: Unlike some other funds that may have restrictions on the types of stocks or sectors they can invest in, Flexi Cap Funds have the flexibility to allocate resources where they see the most potential. This adaptability is crucial for responding to changing market conditions.
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Stability of Large Caps and Growth of Mid and Small Caps: By combining large-cap stability with mid-cap and small-cap growth potential, Flexi Cap Funds aims to provide a balanced approach to investing. This can lead to a well-rounded and diversified portfolio.
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Broader Diversification for Managing Volatility: Flexi Cap Funds offer broader diversification across sectors, which helps in managing the inherent volatility of the stock market. This can be particularly important during uncertain times.
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Ability to Manage Various Market Cycles: Due to its ability to invest across market capitalizations, a Flexi Cap Fund is well-equipped to navigate different market cycles. It can take advantage of market rallies by investing in mid and small caps, and seek stability and protection of returns by investing in large caps during market corrections.
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Most Diversified Option: Flexi Cap Funds offer the flexibility to invest across market capitalizations, including large-cap, mid-cap, and small-cap companies. This diversity spreads risk and provides exposure to a wider range of opportunities.
In the world of investments, shifting between large, mid, and small-cap stocks is like dancing on a tightrope - a misstep could cost you dearly in overall performance.
A Flexible Allocation can help get higher returns
Investment in Flexi-Cap Funds is IMPORTANT!
Illustration of the HDFC Life Flexi Cap Fund NFO
In the year 2003, Arpita decided to invest ₹1 Lakh in the BSE 500 Index, with an expected rate of return of 18%.
Using the SIP Calculator, you can see that,
Her investment has not just multiplied but soared to an astounding ₹1.73 Cr.
This is the magic of Flexi Cap Fund
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Flexi Cap Fund with the Power of 3
Diversity lies at the heart of this innovative investment strategy. By spreading investments across various sectors, industries, and market caps, the Flexi Cap Fund ensures that it is not overly reliant on a single area of the market.
Performance of Flexi Cap Fund – Fund for All Seasons
Flexi-cap funds, also known as multi-cap funds, are a category of funds that offer flexibility in their investment strategy. They are called “All–in–one” equity funds, where one can invest across Large Cap/Mid-Cap/Small Cap Funds. It helps in navigating volatile times with more flexibility.
| Returns in the last 10 years |
| Large Cap Funds |
15% |
| Mid Cap Funds |
22% |
| Small Cap Fund |
22% |
About HDFC Life
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HDFC Life is one of the leading life insurance companies in India.
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As of September 28, 2023, HDFC Life's total Assets Under Management (AUM) are of ₹2,50,000 Cr.
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HDFC Products provide flexibility in terms of PT (Policy Term)/PPT(Premium Paying Term).
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HDFC Life has a strong track record of historical returns.
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HDFC Life has been at the forefront of digital innovation in the life insurance sector.
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The company offers a variety of online and mobile-based services to its customers, making it easy for them to buy and manage their policies.
People Also Read: HDFC Life Bluechip Fund
What are the Benefits of Purchasing the HDFC Life Flexi Cap Fund from Policybazaar?
Investing in HDFC Life Flexi Cap Fund through Policybazaar offers a range of valuable benefits:
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Convenience: With Policybazaar, you can invest in the HDFC Life Flexi Cap Fund online, eliminating the need for physical visits to banks or insurance agents.
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Comparison: Policybazaar provides a platform to compare various plans, including new funds. This ensures that you have all the necessary information to make an informed decision and secure the best deal available in the market.
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Expert Guidance: Policybazaar boasts a team of financial experts who are ready to assist you in selecting the most suitable NFO plan based on your specific requirements and financial goals.
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Tax Advantages: Investing in the HDFC Life Flexi Cap Fund through Policybazaar can lead to tax benefits. The platform helps you understand and navigate the potential tax advantages associated with your investment, optimizing your financial planning.
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Easy Redemption: When redeeming your NFO investment, Policybazaar provides a seamless process, subject to the terms and conditions specified in the NFO agreement.
How to Buy HDFC Life Flexi Cap Fund from Policybazaar?
To buy HDFC Life Flexi Cap Fund from Policybazaar, follow these steps:
Step 1: Go to the Policybazaar website or open the Policybazaar app. Log into your existing account or create a new one if you don't have an account yet.
Step 2: Once logged in, you'll be prompted to fill in your name, city, age, and contact numbers in the provided form. This information will be used to check the personalized benefits of the plans.
Step 3: After providing your personal information, you'll be presented with a list of available HDFC Life Plans. Select the HDFC Life Flexi Cap Fund option that best suits your needs from the following options:
Step 4: If you're interested in the Flexi Cap Fund, click on the "Get Details" tab for more information.
You can also get FREE expert consultation, just click on talk to expert button.
Step 5: Review the details of the plan carefully. Once you're satisfied, click on the "Proceed" button and follow the prompts displayed on the screen to move forward with the purchase.
Step 6: You will be prompted to enter essential details and specify the amount you want to invest. Select the preferred mode of payment for your investment.
Step 7: Provide your KYC (Know Your Customer) details as required. This step is essential for regulatory compliance.
Step 8: Complete the payment process. Upon successful payment, you will receive confirmation of your purchase.
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