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

ICICI Pru Mutual Fund Dividend

ICICI Prudential Mutual Fund has announced dividend under the following schemes: Scheme Dividend ( Rs /unit) ICICI Pru Capital Protection Oriented Ser V Plan B-D 0.03611325 ICICI Pru Capital Protection Oriented Ser V Plan B Direct-D 0.03611325 ICICI Pru Balanced Advantage Direct-DM 0.06 The record date has been fixed as February 08, 2017. ------------------------------ ------ Invest Rs 1,50,000 and Save Tax upto Rs 46,350 under Section 80C. Get Great Returns by Investing in Best Performing ELSS Funds Top 4 Tax Saver Mutual Funds for 2017 - 2018 Best 4 ELSS Mutual Funds to invest in India for 2017 1. DSP BlackRock Tax Saver Fund 2. Invesco India Tax Plan 3. Tata India Tax Savings Fund 4. BNP Paribas Long Term Equity Fund Invest in Best Performing 2017 Tax Saver Mutual Funds Online Invest Best Tax Saver Mutual Funds Online Download Top Tax Saver Mutual Funds  Application Forms For further information contact  SaveTaxGetRich on 94 8300 8300 ------------------------------ ------ Leave y...

Hidden Bank Fees

  What Banks Hide From Customers Imagine after a peaceful and exciting holiday you receive your bank statement with steep charges. You then rush to your bank and start confronting staff members and to your dismay, you come to know that the high end debit card was charged very heavily. Wouldn't this cause damage to your finances? So remember, the world outside is full of deceptive and double cheating people. Unethical practices are always used by company sales person in order to meet the target. Credit card companies, mutual funds and bank institutions always play dirty tricks to lure customers and the practices are rampant. So here's how you should be careful while dealing with your banks: High End Debit Card Charges While opening an account with a bank you opt for a debit card with minimal charges. But later on when you upgrade your card and opt for high end debit card the annual charge rise by a good amount. Though such a card has slew of features but it all comes at a high ...

Partial withdrawal from PPF

  Public Provident Fund (PPF) account has a lock in period   If you opened a PPF account to meet your retirement needs,, think twice about withdrawing from this fund before retirement. But provided it's an emergency here are the rules. Public Provident Fund (PPF) account has a lock in period before which you cannot withdraw your money.   The partial withdrawal is allowed after the completion of 6 financial years . This means that you will be allowed a partial withdrawal from 1 April 2017. The maximum partial withdrawal allowed is the least of the following: 50 percent of the account balance at the end of fourth financial year, 31 March 15 50 percent of the account balance of the end of previous financial year, 31 March 17.   There's a loan option available on your PPF account between the fourth and the sixth financial year. You can obtain a loan of up to 25 per cent of the balance in your account. However, this will attract interest of 2 percent more than the prevailing ...

Updating a minor PAN card upon becoming adults

  Updating a minor's PAN card once they become adults A PAN card issued in the name of a minor does not contain the minor's photograph or signature, and therefore, cannot be used as a valid proof of identity. Once a minor PAN card holder turns 18, the relevant changes must be made in the PAN records. A new card is then issued bearing a photograph and signature. Application The applicant is required to fill up the "Request for new PAN card andor changes or correction in PAN data" form. The form can be filled up online by accessing NSDL's Tax Information Network website and clicking on the online PAN application tab. Information The applicant must mention the existing PAN number in the application and check the `photo mismatch' and `signature mismatch' boxes, and submit the online form. The form must also be printed out, signed by the applicant, and submitted along with two photographs. Documents Identity and address proof in the form of a copy of the app...

Perpetual SIP - Its Advantages

Retail investors have taken a fancy to investing in mutual funds through systematic investment plans (SIPs). As per industry estimates, Rs 4,000 crore flows into SIPs every month. One way to take advantage of SIPs in a true long-term manner is to opt for a perpetual SIP 1. What is a perpetual SIP? In an SIP , you make periodic investments in a mutual fund scheme of your choice generally every month for a pre defined tenure. While signing up an SIP mandate , you have the option to leave the end-date column blank. If the column is blank, it means the investor has opted for a perpetual SIP . Most fund houses assume this SIP will continue till December 2099 unless you give a written communication to stop it. However, some fund houses require you to tick the `perpetual option'. 2. What are the advantages of perpetual SIPs? Registering an SIP involves a lot of paperwork and it takes time. It is observed that many investors skip their SIP instalments when they go for short-tenure option...
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