HDFC Multi Cap Fund Direct Growth

HDFC Multi Cap Fund is a multi-cap mutual fund that invests in large-cap, small-cap and mid-cap companies. Companies are ranked by their market capitalization. So, the first 100 companies ranked on the stock exchange are large-cap. 101st to 250th are mid-cap and 251st and beyond are small-cap companies.

The fund allocates a minimum of 25% of its assets each to large-cap, mid-cap, and small-cap companies, as mandated by SEBI (Securities and Exchange Board of India). This balanced allocation helps the fund capture the relative stability of large-cap stocks, while also tapping into the higher growth potential of mid and small-cap companies.

HDFC Multi Cap Fund uses the Nifty 500 Multicap 50:25:25 TRI as its benchmark index. This index represents companies across all three market cap segments. 50% allocation to large-caps, and 25% each to mid- and small-cap stocks. By tracking this index, the fund can effectively benchmark its performance against a diversified slice of the broader market.

The fund managers of HDFC understand macroeconomic trends first to decide on top sectors, followed by individual stock analysis to pick stocks for their multi-cap fund. The fund invests 60-75% of its assets in large and mid-cap companies and 25-40% in small-cap companies. They build their portfolio by focusing on growth, value or turnaround properties of a company.

Currently, the fund's portfolio comprises 28.9% small-cap stocks, 45.83% large-cap stocks, and 23.05% mid-cap stocks.

With an AUM of ₹18513.0 crores, HDFC Multi Cap Fund Direct Growth generated a return of -1.6% in 1 year, 22.3% in 3 years. while its benchmark index (Nifty 500) generated -1.3% in 1 year, 14.5% in 3 years, and 19.5% in 5 years.