Midcap companies bring the best of both worlds – large-cap and small-cap, as they fall right between these two market capitalization categories. Midcap stocks offer higher returns compared to large-cap stocks, while they possess lower risk compared to small-cap stocks. When a fund invests in these midcap stocks, it usually reaps generous returns, and in this article, we will be talking about one such midcap fund – HDFC MidCap Opportunities Fund. From the fund’s objective to the process of investing in it, everything will be covered in this article.

HDFC MidCap Opportunities Fund Direct-Growth Fund Management and Objectives

HDFC MidCap Opportunities Fund Direct-Growth invests in the equity and equity-related instruments of companies that mainly belong to the midcap category. The objective of this fund is to generate wealth over time. 

HDFC MidCap Opportunities Fund Direct Plan-Growth is managed by – 

• Chirag Setalvad: He has been managing the fund since 2013’s January. Before joining HDFC AMC, he had worked with New Vernor Advisory Services, ING Barings N.V. He holds a Bachelor’s in Science and a Master’s in Business Administration (MBA) from the University of North Carolina.  

Excited about investing in the HDFC MidCap Opportunities Fund? Open a free Demat account today!

How Does the HDFC MidCap Opportunities Fund Work?

HDFC MidCap Opportunities Fund Direct works based on market capitalization-based allocation. The fund managers pick the most promising midcap stocks and invest the assets under management (AUM) across the selected stocks as per priority. This fund usually outperforms when the markets are moving upwards, as midcap companies perform better during the bull run in the market; however, during the bear phase, most midcap funds do not fall sharply like smallcap funds either. 

Performance and Returns (As of 9 June 2025) 

HDFC MidCap Opportunities Fund Direct-Growth has been offering consistent returns over and over again. Here is a snapshot of the returns –  

Time Frame	HDFC MidCap Opportunities Fund Direct-Growth (%)	Category Average
YTD	1.87	1.69
3 Month	16.20	18.58
6 Month	0.19	-1.01
1 Year	13.09	10.26
3 Year	31.91	27.07
5 Year	34.51	31.35
7 Year	20	18.93
10 Year	19.17	17.78

From the above performance, it can be understood that the fund has outperformed its peers in most scenarios/timeframes. Especially, during the 3–5-year period, the fund has exceeded the category averages. 

Investment Allocation (As of 30 April 2025)

The HDFC MidCap Opportunities Fund Growth has 92.56% equity and equity-related instruments, and 7.44% is cash and cash equivalents. 

Market cap-wise asset allocation 

• Giant Cap – 1.22% 
• Large Cap – 32.54%
• Mid-cap – 62.18%
• Small-cap – 4.05%

As of 30 April 2025, the fund had an average market cap of ₹45651 crore, and it spans

across 79 stocks. The top 10 holdings make up 31.21% of its assets. 

Sectoral Allocation 

The fund invests across sectors, offering a well-diversified portfolio. Here are the top five sectors as of 30 April 2025 – 

Sectors	Allocation (%)
Financial Services	24.81
Consumer Discretionary	16.45
Technology	13.1
Healthcare	10.78
Industrials	8.55

Stock-wise Allocation 

The top five stocks of the HDFC MidCap Opportunities Fund include – 

Stocks	Assets (%)
Max Financial	4.45
The Federal Bank	3.36
Balkrishna Ind	3.34
The Indian Hotels	3.31
Ipca Laboratories	3.01

Key Metrics 

As of 31 May 2025, the fund had an expense ratio of 0.79%, which is a bit higher than the category average of 0.75%.

Fund Details	Information
AUM (Assets Under Management)	₹74910 Crore as of 30 April 2025
Category	Equity Fund, open-ended
Fund Manager	Chirag Setalvad
Exit Load	1% if redeemed within 365 days
Entry Load	Nil
Minimum Investment	₹100 (Lump sum)₹100 (SIP)
Benchmark	Nifty Midcap 150 TRI

The HDFC MidCap Opportunities Fund NAV as of 9 June 2025 stood at ₹212.9780.

Risk and Performance of the HDFC MidCap Opportunities Fund 

This fund is classified as a ‘Very High Risk’ fund. It usually offers a higher return but also possesses higher risk. 

1. Standard Deviation (Std Dev%): It shows how much the returns vary from the average returns generated by the funds themselves. The higher this number, the more it fluctuates.

The Standard deviation for the fund is 15.11%, while that of the category is 16.50%, making the fund a little bit less volatile than its peers.

2. Beta: This ratio indicates the volatility of the fund’s performance, compared to similar funds in the market. The lower the Beta, the more predictable the returns are, and vice versa. It helps in comparing funds. 

The fund has 0.87% as beta, while that of the category is 0.93%, again making the fund a bit less volatile.

3. Sharpe Ratio: This ratio indicates the return you get for the risk you’re taking. A higher number means better risk-adjusted returns.

The fund has 1.41% while the category average is 1.06%. It indicates higher risk-adjusted profits.

4. Sortino Ratio: It is similar to Sharpe but only looks at downside risk (the risk of losing money).

The fund has 2.09% while the category average is 1.50%, indicating higher downside risk-adjusted returns. 

5. Alpha: It measures the extra return the fund gives above the market’s average return.

The fund has an Alpha of 5.51%, and the category average is 0.57%, indicating the fund’s ability to offer way higher returns than its peers/ category. 

Taxation for HDFC MidCap Opportunities Fund 

If you’re investing in the HDFC MidCap Opportunities Fund, here’s how your returns will be taxed:

1. Short-Term Gains – If you sell the fund units within 1 year of the date of investment, a 20% tax will be levied on the entire return generated during the period. 
2. Long-Term Gains – If you sell the fund units after one year, any profit generated over and above ₹1.25 lakh will be taxable at a 12.5% rate. The same rate will be applicable for any investment tenure above 1 year. 

So, the longer you hold your investments, the better returns you can expect and the less the effect of taxes!

3. Taxes on Dividends – Dividends earned, if any, will be taxable in the hands of investors as per their tax slabs. If the dividend income surpasses ₹10000 in a financial year, then the fund house will deduct 10% TDS before disbursing the dividend into the account of the investor. 

Minimum Investment and Lock-in Period

The minimum investment amount in the HDFC MidCap Opportunities Fund is ₹100 for lump sum and SIP, which is ₹100. There is no lock-in period for the HDFC MidCap Opportunities Fund Direct-Growth.

How to Invest in HDFC MidCap Opportunities Fund Direct?

You can invest in the HDFC MidCap Opportunities Fund – Direct Growth plan with Shoonya. 

Shoonya offers a free Demat account,  Zero brokerage trading, advanced trading tools, 100+ technical indicators, and much more!

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 https://trade.shoonya.com From the “Orders” section, click on “MF order.”
2. Search for the fund you wish to invest in; in this case, the HDFC MidCap Opportunities 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. You will receive a payment link on your registered email. Use the link to make the payment.

After payment, your 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 MidCap Opportunities Fund Direct Plan-Growth plan, you must follow these steps:

1. First, you need to log in to your Shoonya account at https://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, the HDFC MidCap Opportunities Fund – Direct Growth plan.
3. If this is your first SIP with Shoonya, you need to create a Mandate ID. 

For that, you must enter the mandate amount and the validity date (until 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).

If you do not want to forget your SIPs and invest systematically, the SIP method can be most suitable for you. 

Why Invest in the HDFC MidCap Opportunities Fund?

The reasons for investing in the HDFC MidCap Opportunities Fund Direct-Growth can be – 

• Long-term capital accumulation – wealth building
• Well-diversified portfolio across sectors

Suitability of this Fund| Who Should Invest?

The HDFC MidCap Opportunities Fund Direct is suitable for investors who:

• Are Risk takers
• Looking for long-term capital appreciation 
• Can stay invested for at least seven years 

Conclusion

HDFC MidCap Opportunities Fund, as you see above, has been delivering exceptional performance year after year. It is suitable for investors who are looking for higher returns but against calculated risks. Also, the fund needs a long-term commitment for long-term capital appreciation. So, before investing in the fund, you must consider all the aspects and see whether it fits into your investment portfolio or not, and accordingly invest.  

HDFC MidCap Opportunities Fund Direct Plan-Growth | FAQs

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.