Best Hdfc Mutual Funds: Where To Invest Smartly

HDFC Mutual Fund, formerly HDFC Asset Management Company Limited, is one of the largest mutual fund houses in India. It offers over 100 mutual fund schemes, including equity-oriented funds, debt funds, ETFs, and hybrid schemes.

With such a wide range of options, which is the best HDFC mutual fund to invest in?

Well, that depends on your investment goals and risk appetite.

If you're looking for high returns and are willing to take on higher risks, you might consider equity-oriented funds like the HDFC Focused 30 Fund, HDFC Mid-Cap Opportunities Fund, or the HDFC Large and Mid-Cap Fund.

On the other hand, if you prefer a more balanced approach, the HDFC Balanced Advantage Fund, HDFC Hybrid Equity Fund, and HDFC Arbitrage Fund are among the top schemes in terms of Assets Under Management (AUM).

For those with a shorter investment horizon, debt funds like the HDFC Short-Term Debt Fund or the HDFC Corporate Bond Fund might be more suitable.

When deciding which HDFC mutual fund to invest in, it's important to consider factors such as your financial objectives, the expense ratio, exit load, past performance of the fund, and the experience of the fund manager.

HDFC Small Cap Fund

The HDFC Small Cap Fund is mandated to invest a minimum of 65% of its assets in small-cap stocks at all times. As of 31 January 2024, the fund had invested 90.07% in equity and 9.93% in cash and cash equivalents. The fund's portfolio turnover ratio is 25.49%, and it has a Very High-risk rating according to SEBI's Riskometer.

The fund's performance has been average among its peers, with a 3-year annualised return of 25.84% and a 5-year annualised return of 30.11%. The expense ratio of the fund is 1.57%, and the fund size is ₹33893.79 Cr, which is 10.59% of the investment in its category.

HDFC Mid-Cap Opportunities Fund

The scheme's objective is to provide long-term capital appreciation/income by investing predominantly in mid-cap companies. It is mandated to invest at least 65% of its assets in mid-cap stocks at all times. As of 31 July 2024, the fund had invested 92% in equity and 8% in cash and cash equivalents. The fund has a very high-risk rating and is suitable for investors looking for high returns over a period of at least 3-4 years. The minimum SIP investment is ₹100, and there is an exit load of 1% if redeemed within 1 year.

The fund has a diverse portfolio, investing in companies across various sectors, including The Indian Hotels Company Ltd., Max Financial Services Ltd., Ipca Laboratories Ltd., Hindustan Petroleum Corporation Ltd., and Tata Communications Ltd.

Overall, HDFC Mid-Cap Opportunities Fund is a strong choice for investors seeking exposure to mid-cap companies and are willing to take on higher risk for potentially higher returns.

HDFC Focused 30 Fund

This fund is one of the top-rated HDFC mutual funds and has very good performance among its peers. It has a total investment of ₹14329.6 Cr, which is 9.53% of the investment in its category. The expense ratio is 1.67%, and the risk associated with the investment is high. The fund size is large enough to allocate resources to research and management, and the fund manager has a proven track record of performance.

The latest NAV (Net Asset Value) of the fund is ₹225.232, as of 30 September 2024. The NAV as of 20 August 2024 was ₹237.7560. The fund has delivered 16.47% returns since its inception 11 years and seven months ago.

The minimum investment amount is ₹100, and the minimum SIP investment amount is also ₹100. The scheme seeks to generate long-term capital appreciation/income by investing in equity and equity-related instruments of up to 30 companies. It is suitable for investors who have advanced knowledge of macro trends and are prepared for the possibility of moderate to high losses in their investments, even when the overall market is performing well.

HDFC Flexi Cap Fund

As of late September 2024, the Net Asset Value (NAV) of the fund was ₹1974.783, with total assets under management (AUM) of ₹63436.49 Cr. The expense ratio is 1.44%, and the fund has delivered 18.39% returns since its inception 28 years ago.

The fund's portfolio is largely conservative, with most holdings in Large Cap stocks and debt instruments. As of August 31, 2024, 86.51% was invested in domestic equities, with 59.99% in Large Cap stocks, 5.27% in Mid Cap stocks, and 4.08% in Small Cap stocks. The remaining 0.64% was invested in debt, specifically government securities.

The fund is suitable for investors who can invest for at least 3-4 years and are seeking high returns. However, these investors should also be prepared for the possibility of moderate losses.

The minimum amount required to invest in HDFC Flexi Cap Fund via a lump sum is ₹100, and via SIP is also ₹100.

HDFC Large and Mid Cap Fund

The fund seeks to generate long-term capital appreciation/income from a portfolio predominantly invested in equity and equity-related instruments. It has delivered 12.48% returns since its inception and is suitable for investors looking for high returns over at least a three-to-four-year period. However, investors should also be prepared for the possibility of moderate losses.

The fund's portfolio is largely conservative, with most holdings in Large Cap stocks and debt instruments. As of 30 September 2024, 38.36% was invested in Large Cap stocks, 30.34% in Mid Cap stocks, 10.13% in Small Cap stocks, and 2.5% in Cash & Cash Eq. The fund has consistently generated higher annualised returns than the category average for the past 1, 3, and 5 years.

The minimum SIP investment is set to ₹100, with a minimum lumpsum investment of ₹100. There is an exit load of 1% if redeemed within 1 year.

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