HDFC Mid Cap Fund Direct Growth

HDFC Mid Cap Opportunities Fund is a mid-cap mutual fund that is required by SEBI (Securities and Exchange Board of India) to invest at least 65% of its assets in mid-sized companies. These are companies that rank 101st to 250th on the stock exchange as per their market capitalization.

The fund uses the Nifty Mid Cap 150 TRI as its benchmark index. A benchmark index measures and compares the fund's performance against a broader market of mid-cap companies. HDFC Mid Cap Opportunities Fund maintains a strong focus on sectors like Financials, Automobiles, Healthcare, Technology, etc.

Investment Strategy

The fund manager adopts a bottom-up stock-picking approach, focusing on individual companies rather than sectors or market trends. The emphasis is on identifying business with:

- Sound financial strength

- Strong business model

- Long-term growth potential

Should I Invest In HDFC Mid Cap Opportunties Fund?

HDFC Mid-cap fund invests in mid-sized companies. These companies are emerging businesses that are growing rapidly and hold the potential to become large-cap. If you wish to invest in the HDFC mid-cap fund, you must have the following traits:

- Long-term investmentor

- Moderate to high-risk appetite

- Requires active management

Taxation On HDFC Mid Cap Direct Growth Fund

Tax liability across all equity mutual funds is the same. For HDFC Mid Cap Fund, you will be taxed on any profit you make on the sale of your investments. If you sell your investment within 12 months, it is termed as a Short-term capital gain (STCG). If you sell your investments after 12 months, it is termed as Long-term capital gain (LTCG). The taxes on your investment are the following:

- Short-term Capital Gain Tax: 20% of STCG

- Long-term Capital Gain Tax: LTCG Exempted up to 1,25,000 and then 12.5%.

Allocation & Historical Returns

Currently, the fund's portfolio comprises 20.6% small-cap stocks, 5.37% large-cap stocks, and 65.73% mid-cap stocks.

With an AUM of ₹79718.0 crores, HDFC Mid Cap Fund Direct Growth generated a return of 8.4% in 1 year, 33.5% in 3 years, 33.4% in 5 years. while its benchmark index (Nifty Midcap 150) generated 2.9% in 1 year, 29.4% in 3 years, and 30.8% in 5 years.