Skip to main content

HDFC Mid-Cap Opportunities Fund

Invest In Tax Saving Mutual Funds Online

Call 0 94 8300 8300 (India)
 

HDFC MidCap Fund

If you are looking for mid-cap exposure but with limited volatility, you can consider phased investments in units of HDFC Mid-Cap Opportunities. With a return of 14 per cent compounded annually in the last three years, the fund is neck-to-neck with established peers such as IDFC Premier Equity.


This return is also superior to the 3.6 per cent annual return managed by its benchmark CNX Midcap. The fund completed five years in mid-2012 and has now seen a full market cycle. Its ability to contain downside and provide superior risk-adjusted returns makes it a good candidate for investors who are not too adventurous.

Suitability


HDFC Mid-Cap Opportunities can be labeled as a less risky fund among the universe of mid cap schemes. This is because its exposure to small or micro-cap stocks is not as high as certain other peers such as SBI Magnum Emerging Businesses or DSP BR Small and Mid Cap.


That said, the fund still remains riskier than regular diversified equity schemes and will fit only a long-term wealth building portfolio. You can consider the SIP option spread over not less than three years. Avoid stopping SIPs in a down market. That is the time you can average your cost. Review your SIPs only when the fund under performs peers for a period of six months to a year.

Performance


HDFC Mid-Cap Opportunities beat its benchmark CNX Midcap 82 per cent of the times, on a one-year rolling return basis in the last five years. That is an above-average performance, considering this midcap index is a tough benchmark to beat. Its five-year annual returns at 7.5 per cent, may seem lack luster, thanks to the market peak five years ago, but its SIP returns gives the true picture.

At 20 per cent annually (IRR), the fund's SIP returns over the last five years is about the same as IDFC Premier Equity and is marginally higher than others such as DSP BR Small and Midcap and Religare Midcap. But it is worth noting that the HDFC MI-Cap Opportunities' SIP return is lower than the 27 per cent managed by SBI Magnum Emerging Businesses over this period.


This is because the later is more volatile, thus providing scope for higher averaging. It is also more aggressively managed. Seen from a risk adjusted basis over this period (measured by sharpe ratio), HDFC Mid-Cap Opportunities scores over Magnum Emerging Businesses.

Portfolio


HDFC Mid-Cap Opportunities was a close-end fund until mid 2010. Therefore, it was easier for the fund to combat the market meltdown in 2008 and bounce back in 2009 as it comfortably stayed almost fully invested in equities. But even after it became open-ended, the fund continued to stay over 90-percent invested in equities, irrespective of market volatility. This feature is true of most other funds from the HDFC stable.

In 2011 for instance, when funds such as IDFC Premier Equity went as low as 75 per cent in equities, HDFC Mid-Cap continued to hold 92-95 per cent in this segment. This is also one strategy that we prefer in the fund compared with IDFC Premier Equity. We have taken the later for most comparison purposes because IDFC Premier Equity too, does not heavily invest in very small companies. But then given its growing asset size, IDFC Premier has higher exposure to larger companies compared with HDFC Mid-Cap Opportunities.


Hence, while the former may be better suited for those with little risk appetite, HDFC Mid-Cap still dons a better mid-cap profile. HDFC Mid-Cap Opportunities currently sports an interesting portfolio with high exposure to banks, pharma and interestingly, industrial products.


At this point, we like the exposure that this fund has than the sectors such as FMCG and services that IDFC Premier Equity holds. Carborundum Universal, Allahabad Bank and Sundaram Fastners appear to be some of its value picks. Stocks such as Supreme Industries, Solar Industries and Shanthi Gears rewarded well. The fund is managed by Chirag Setalvad since inception.

Happy Investing!!

We can help. Call 0 94 8300 8300 (India)

Leave your comment with mail ID and we will answer them

OR

You can write back to us at PrajnaCapital [at] Gmail [dot] Com

---------------------------------------------

Invest in Tax Saving Mutual Funds ( ELSS Mutual Funds ) to upto Rs 1 lakh and Save tax under Section 80C.

Invest Tax Saving Mutual Funds Online

Tax Saving Mutual Funds Online

These links can be used to Purchase Mutual Funds Online that are regular also (Investment, non-tax saving)

Download Tax Saving Mutual Fund Application Forms from all AMCs

Download Tax Saving Mutual Fund Applications

These Application Forms can be used for buying regular mutual funds also

Some of the best Tax Saving Mutual Funds available ( ELSS Mutual Funds )

  1. ICICI Prudential Tax Plan Invest Online
  2. HDFC TaxSaver Invest Online
  3. DSP BlackRock Tax Saver Fund Invest Online
  4. Reliance Tax Saver (ELSS) Fund Invest Online
  5. Birla Sun Life Tax Relief '96 Invest Online
  6. IDFC Tax Advantage (ELSS) Fund Invest Online
  7. SBI Magnum Tax Gain Scheme 1993 Invest Online
  8. Sundaram Tax Saver Invest Online
  9. Edelweiss ELSS Invest Online

------------------

Best Performing Mutual Funds

    1. Largecap Funds Invest Online
      1. DSP BlackRock Top 100 Fund
      2. ICICI Prudential Focused Blue Chip Fund
      3. Birla Sun Life Front Line Equity Fund
    2. Large and Midcap Funds Invest Online
      1. ICICI Prudential Dynamic Plan
      2. HDFC Top 200 Fund
      3. UTI Dividend Yield Fund
    1. Mid and SmallCap Funds Invest Online
      1. Reliance Equity Opportunities Fund
      2. DSP BlackRock Small & Midcap Fund
      3. Sundaram Select Midcap
      4. IDFC Premier Equity Fund
    1. Small and MicroCap Funds Invest Online
      1. DSP BlackRock MicroCap Fund
    1. Sector Funds Invest Online
      1. Reliance Banking Fund
      2. Reliance Banking Fund
    1. Tax Saver MutualFunds Invest Online
      1. ICICI Prudential Tax Plan
      2. HDFC Taxsaver
      3. DSP BlackRock Tax Saver Fund
      4. Reliance Tax Saver (ELSS) Fund
    2. Gold Mutual Funds Invest Online
      1. Relaince Gold Savings Fund
      2. ICICI Prudential Regular Gold Savings Fund
      3. HDFC Gold Fund

Popular posts from this blog

Am you Required to E-file Tax Return?

Download Tax Saving Mutual Fund Application Forms Invest In Tax Saving Mutual Funds Online Buy Gold Mutual Funds Leave a missed Call on 94 8300 8300   Am I Required to 'E-file' My Return? Yes, under the law you are required to e-file your return if your income for the year is Rs. 500,000 or more. Even if you are not required to e-file your return, it is advisable to do so for the following benefits: i) E-filing is environment friendly. ii) E-filing ensures certain validations before the return is filed. Therefore, e-returns are more accurate than the paper returns. iii) E-returns are processed faster than the paper returns. iv) E-filing can be done from the comfort of home/office and you do not have to stand in queue to e-file. v) E-returns can be accessed anytime from the tax department's e-filing portal. For further information contact Prajna Capit...

Mutual Fund Review: HDFC Index Sensex Plus

  In terms of size, HDFC Index Sensex Plus may be one of the smallest offerings from the HDFC stable. But that has not dampened its show, which has beaten the Sensex by a mile in overall returns   HDFC Index Sensex Plus is a passively managed diversified equity scheme with Sensex as its benchmark index. The fund also invests a small proportion of its equity portfolio in non-Sensex scrips. The scheme cannot boast of an impressive size and is one of the smallest in the HDFC basket with assets under management (AUM) of less than 60 crore. PERFORMANCE: Being passively managed and portfolio aligned to that of the benchmark, the performance of the index fund is expected to follow that of the benchmark and in this respect, it has not disappointed investors. Since its launch in July 2002, the fund has outperformed Sensex in overall returns by good margins.    While every 1,000 invested in HDFC Index Sensex Plus in July 2002 is worth 6,130 now, a similar amount invested in Sensex then wo...

IDFC - Long term infrastructure bonds - Tranche 2

IDFC - Long term infrastructure bonds What are infrastructure bonds? In 2010, the government introduced a new section 80CCF under the Income Tax Act, 1961 (" Income Tax Act ") to provide for income tax deductions for subscription to long-term infrastructure bonds and pursuant to that the Central Board of Direct Taxes passed Notification No. 48/2010/F.No.149/84/2010-SO(TPL) dated July 9, 2010. These long term infrastructure bonds offer an additional window of tax deduction of investments up to Rs. 20,000 for the financial year 2010-11. This deduction is over and above the Rs 1 lakh deduction available under sections 80C, 80CCC and 80CCD read with section 80CCE of the Income Tax Act. Infrastructure bonds help in intermediating the retail investor's savings into infrastructure sector directly. Long term infrastructure Bonds by IDFC IDFC issued an earlier tranche of these long term infrastructure bonds on November 12, 2010. This is the second public issue of long-te...

Section 80CCD

Top SIP Funds Online   Income tax deduction under section 80CCD Under Income Tax, TaxPayers have the benefit of claiming several deductions. Out of the deduction avenues, Section 80CCD provides t axpayer deductions against investments made in specific sector s. Under Section 80CCD, an assessee is eligible to claim deductions against the contributions made to the National Pension Scheme or Atal Pension Yojana. Contributions made by an employer to National Pension Scheme are also eligible for deductions under the provisions of Section 80 CCD. In this article, we will take a look at the primary features of this section, the terms and conditions for claiming deductions, the eligibility to claim such deductions, and some of the commonly asked questions in this regard. There are two parts of Section 80CCD. Subsection 1 of this section refers to tax deductions for all assesses who are central government or state government employees, or self-employed or employed by any other employers. In...

ULIP Review: ProGrowth Super II

  If you are interested in a death cover that's just big enough, HDFC SL ProGrowth Super II is something worth a try. The beauty is it has something for everybody — you name the risk profile, the category is right up there. But do a SWOT analysis of the basket, and the gloss fades     HDFC SL ProGrowth Super II is a type-II unit-linked insurance plan ( ULIP ). Launched in September 2010, this is a small ticket-size scheme with multiple rider options and adequate death cover. It offers five investment options (funds) — one in each category of large-cap equity, mid-cap equity, balanced, debt and money market fund. COST STRUCTURE: ProGrowth Super II is reasonably priced, with the premium allocation charge lower than most others in the category. However, the scheme's mortality charge is almost 60% that of LIC mortality table for those investing early in life. This charge reduces with age. BENEFITS: Investors can choose a sum assured between 10-40 times the annualised premium...
Related Posts Plugin for WordPress, Blogger...
Invest in Tax Saving Mutual Funds Download Any Applications
Transact Mutual Funds Online Invest Online
Buy Gold Mutual Funds Invest Now