HDFC Large Cap Fund Direct Growth

The HDFC Large Cap Fund - Direct Plan - Growth Option is a prominent player in the large-cap mutual fund category, boasting a substantial Assets Under Management (AUM) of ₹33,913.31 Crores, ranking it 5th in its category. This fund is designed to provide investors with exposure to large-cap equities, aiming for stable returns with lower volatility. Its expense ratio of 1.01% places it as the 9th most cost-effective option in its category, making it an attractive choice for cost-conscious investors.

The fund exhibits a well-diversified sector allocation, with a significant 34.35% invested in the financial sector, reflecting its alignment with market indices where financials are heavily weighted. Other notable allocations include 12.26% in cyclical sectors and 9.80% in technology, indicating a balanced approach between growth and stability. The fund's market cap allocation is heavily skewed towards large-cap stocks, with 93.34% of its portfolio dedicated to this segment, ensuring a focus on established companies with a track record of performance.

The fund's performance metrics reveal a mixed picture. Over a 3-year period, it has achieved an alpha of 4.61, indicating a strong excess return over its benchmark. However, the 1-year alpha is slightly negative at -0.22. The fund's batting average, which measures the percentage of time it outperforms its benchmark, stands at 61.11% over three years. In terms of risk, the fund's beta is consistently below 1, suggesting lower volatility compared to the market, while its Sharpe ratio of 0.713 over three years indicates a favorable risk-adjusted return.

The fund's capture ratios demonstrate its ability to perform in varying market conditions. Over a 3-year period, the fund has an up market capture ratio of 103.76%, indicating it outperforms the benchmark in rising markets. Conversely, its down market capture ratio of 78.8% suggests it falls less than the benchmark during downturns, highlighting its defensive characteristics. The standard deviation, a measure of volatility, is 12.989 over three years, which is lower than the category average, reinforcing its relatively stable performance.

When compared to the large-cap category, the HDFC Large Cap Fund shows a superior performance in several metrics. Its 3-year alpha of 4.61 significantly outpaces the category's -0.29, and its Sharpe ratio of 0.713 is notably higher than the category's 0.398. The fund's information ratio, which measures excess return per unit of risk, is 1.74 over three years, outperforming the category's -0.38. These metrics underscore the fund's ability to deliver better risk-adjusted returns than its peers.