HDFC FlexiCap Fund Direct Growth Plan: Performance & Review- 2024

Have you been actively looking for a mutual fund scheme that gives you the benefit of flexibility across large, mid, and small-cap stocks? HDFC FlexiCap Fund Direct Growth Plan is a fund that allows you to take advantage of all market segments. 

If you belong to the category of long-term investors, you would certainly know that the key to building a successful portfolio is diversification. HDFC FlexiCap Fund – Direct Growth Plan offers you that. It aims to maximise your returns over the long term without locking your money in for too long. 

In this article, we’ll discuss the HDFC FLEXICAP FUND – DIRECT GROWTH NAV history and give you the latest fund insights.

Fund Management and Objectives

The HDFC FlexiCap Fund direct growth is an investment option that focuses on a mix of large, medium, and small companies stocks. It started on January 1, 2013.

It is a fund that invests across a wide range of companies, helping you multiply your money over the long term by mostly investing in stocks and related investments. The fund aims to pick the best-performing stocks based on current market conditions.

The HDFC FlexiCap Fund is managed by a team of skilled professionals. Roshi Jain, the main fund manager, has been in charge since July 2022. Dhruv Muchhal, who is an expert in equity analysis and fund management, oversees investments outside of India. 

HDFC FlexiCap Fund: Impressive Performance and Returns Over Years

Here is the Performance & HDFC flexi cap fund direct growth returns overview as of Dec 16th, 2024!

1. The fund has given a return of 31.37% over the past year.
2. The fund’s return over the last 3 years is 25.22% annually.
3. Over 5 years, the fund returned 23.62% annually.
4. Over the span of the last 10 years, HDFC flexi cap fund direct growth return has been 15.33%.

Since its launch in 1995, the fund has returned 17.61% annually.

Portfolio and Investment Allocation

Where Does the HDFC Flexi Cap Fund Direct Plan Invest?

The fund spreads its money across different types of investments to balance growth and safety:

• Stocks (87.35%)
• Debt (0.77%)
• Real Estate (3.07%
• Cash (8.81%)

Which Companies Does the Fund Invest In?

The HDFC Flexi Cap Fund Direct Growth mainly focuses on large and well-established companies, with a small portion on mid-sized and small companies:

• Large Companies (64.99%)
• Mid-Sized Companies (9.42%)
• Small Companies (3.75%)

This balance ensures the fund has stability from larger companies while also capturing growth opportunities from smaller ones.

Key Features of the HDFC Flexi Cap Fund Direct Plan Portfolio

• Number of Stocks: The fund invests in 53 different companies.
• Top 10 Stocks: These make up 55.62% of the portfolio.
• Valuation: The companies in the portfolio are fairly valued based on their earnings and assets.

Which Industries Does the Fund Focus On?

The fund invests in a mix of industries to spread the risk and take advantage of growth opportunities:

1. Financials (38.62%): This includes banks and financial services.
2. Consumer Discretionary (13.53%): Includes sectors like cars and luxury goods.
3. Technology (11.98%): Covers IT and communication companies.
4. Healthcare (11.72%): Focuses on pharmaceuticals and healthcare services.

Other sectors include materials, energy, and real estate, but their contribution is smaller.

Top Companies in the HDFC Flexi Cap Fund Direct-Growth Fund

Here are some of the biggest investments made by the fund:

• HDFC Bank (9.75%): A leading private bank.
• ICICI Bank (9.71%): Another top private sector bank.
• Axis Bank (8.23%): A major banking player.
• Cipla (4.44%): A well-known pharmaceutical company.
• Kotak Bank (4.39%): A large financial services group.

Check out the list of top private banks in India!

The fund also invests in companies like Maruti Suzuki, SBI Life Insurance, and Bharti Airtel, which represent a mix of industries.

This balanced approach makes the HDFC FlexiCap Fund a strong choice for long-term investors who want diversification and growth in their portfolio.

Key Metrics

The HDFC FlexiCap Fund – Direct Plan-Growth plan offers a flexible investment approach.

Fund Type: Open-ended equity scheme.

Risk Level: Very high, suitable for long-term investors.

SIP Minimum Investment: ₹100, accessible for small investors.

Performance:

• 1 Year: 35.47% return.
• 3 Years: 26.22% CAGR.
• 5 Years: 23.62% CAGR.
• Since Inception: 17.61%.

Benchmark Comparison: Outperformed NIFTY 500 TRI and NIFTY 50 TRI.

Top Holdings: HDFC Bank (9.75%), ICICI Bank (9.71%), Axis Bank (8.23%).

Sector Allocation: Focus on banking, financials, technology, and pharmaceuticals.

NAV: ₹2,087.1300, as of Dec 11, 2024.

AUM: ₹66,304.16 crores

Expense Ratio: 0.76% for Direct Plan.

Exit Load: 1% within 1 year, none after 1 year.

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Risk and Volatility

This fund is classified as Very High Risk. It is suitable for investors who are comfortable with significant fluctuations in value to achieve higher returns over the long term.

Performance Metrics (Based on the last three years, as of 30-Nov-2024):

1. Performance (Returns)

Over the last three years, the fund has delivered an impressive 24.22% average annual return.

This is much higher than its benchmark index, the BSE 500 TRI, which returned 16.55% in the same period.

2. Volatility (Standard Deviation

The fund’s 12.18% volatility is lower than the benchmark (13.52%), which means it is slightly more stable than the overall market.

3. Risk-Adjusted Returns

Sharpe Ratio (1.51): This measures how much return the fund provides for each unit of risk taken. A higher number means better returns for the risk involved.

Sortino Ratio (2.46): Similar to Sharpe but focuses on downside risks (losses). 

4. Sensitivity to the Market (Beta)

The fund’s Beta of 0.86 means it moves less than the market. If the market rises or falls, this fund may move slightly less dramatically, which can help reduce big swings in value.

5. Extra Returns (Alpha)

The fund has generated an Alpha of 9.18%, which means it has outperformed its benchmark significantly. This is a sign of good fund management.

Taxation for HDFC FlexiCap Fund

Since the HDFC FlexiCap Fund is an equity-oriented mutual fund, the tax rules for equity funds apply:

• Short-term Capital Gains (STCG):

HDFC Flexi Cap Fund Direct Growth is taxed at 15% if the units are redeemed within 1 year of investment.

• Long-term Capital Gains (LTCG):

HDFC Flexi Cap Fund Direct Growth is taxed at 10% if your gains are exceeding ₹1 lakh in a financial year.

If you hold the mutual fund units for more than 1 year, and the gain is below ₹1 lakh, it is exempt from tax.

Investment Details for HDFC FlexiCap Fund

Here’s how you can invest in the HDFC FlexiCap Fund:

1. Minimum Investment:

You can start by investing as little as ₹100 through a Systematic Investment Plan (SIP).

If you prefer to make a one-time payment, the minimum amount is ₹5,000.

2. Lock-in Period:

There is no lock-in period. This means you can take your money out whenever you need, but keep in mind the tax rules based on how long you hold your investment.

How to Invest in HDFC Mutual Funds

You can invest in HDFC Flexi Cap Fund Direct-Growth with Shoonya. Shoonya offers accessible and affordable commission-free trading on mutual funds, as well as a free deposit and trading account!

Investing in Lump Sum Mutual Funds Through the Shoonya Web Platform

Here’s a quick guide on how to invest in lump sum mutual funds through the Shoonya web platform:

1. First, you must log in to your Shoonya account at trade.shoonya.com. From the “Orders” section, click on “MF order.”
2. Search for the fund you wish to invest in; in this case, HDFC FlexiCap Fund Direct Growth Plan.
3. Choose “Fresh” for a new investment and enter the amount you want to invest.
4. You can complete your purchase by clicking the “Purchase” button.
5. A payment link will be sent to your registered email. Use the link to make the payment.

After payment, your HDFC FlexiCap mutual fund units will be allotted to your Demat account within T+2 days.

Note: You can only make the payment using the bank account registered with your Demat account.

Setting Up an SIP for Mutual Funds

If you prefer a Systematic Investment Plan (SIP) for HDFC FlexiCap Fund – Direct Plan – Growth Plan, you must follow these steps:

1. First, you neet to log in to your Shoonya account at trade.shoonya.com. Go to “Orders” and click on “XSIP.”
2. Find the mutual fund for which you want to set up an SIP. In this case, select HDFC FlexiCap Fund – Direct Plan.
3. If this is your first SIP with Shoonya, you need to create a Mandate ID. Enter the Mandate amount and the validity date (until when you want to keep your SIP active).
4. You must submit the details, and you’ll receive a Mandate authentication link via email. Approval generally takes 24 hours.

Once your Mandate is approved, you can follow these steps to set up your SIP:

1. Go to “XSIP,” enter the SIP amount, and select “Fresh” as the transaction type.
2. Choose the date when the SIP will be debited directly from your registered bank.
3. The approved Mandate ID will auto-reflect.
4. Choose “Monthly” for monthly debits and specify the number of installments (e.g., 24 installments for a 2-year SIP).

This process will help you invest systematically with ease.

What is a Flexi Cap Fund?

A Flexi Cap Fund is a type of diversified equity mutual fund that invests across large-cap, mid-cap, and small-cap stocks. Unlike other funds that are restricted to a specific category of companies, Flexi Cap funds have the flexibility. They tend to invest in companies of any size, depending on where the fund manager sees the best growth potential.

Who Should Invest in HDFC FlexiCap Fund – Direct Plan – Growth Plan?

Flexi Cap Funds are ideal for investors seeking long-term capital appreciation and who are comfortable with very high risk. They suit those with a 3-year or longer investment horizon and a tolerance for market fluctuations. It’s best for individuals looking for exposure to a broad mix of companies, with a focus on growth potential.

Things to Know Before Investing in HDFC FlexiCap Fund – Direct Plan – Growth Plan

• The fund carries a very high risk due to its equity-heavy nature.
• It has historically provided strong returns. However, you must know that the past performance is not a guarantee of future results.
• An exit load of 1% is applicable if you redeem the units within one year of investment.
• HDFC FlexiCap Fund Direct Growth Plan expense ratio is relatively low in the Direct Plan (0.76%).

This makes HDFC Flexi Cap Fund a good choice for investors looking to diversify their portfolio with a mix of large and mid-sized companies.

FAQs: HDFC FlexiCap Fund – Direct Growth Plan

Source: ValueResearch

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Disclaimer: Investments in the securities market are subject to market risks; read all the related documents carefully before investing.