HDFC Multi Cap Fund NFO Review


HDFC Mutual Fund has launched a new fund offer, HDFC Multicap Fund which will be open for subscription from 23rd November 2021 to 7th December 2021. It is an open-ended fund that, will invest in large-cap, mid-cap and small-cap stocks. SEBI had earlier amended the guidelines, where it had indicated that multi cap funds should invest a minimum of 25% each in large-cap, mid-cap and small-cap stocks.


INVESTMENT OBJECTIVE

The investment objective of the Scheme is to generate long term capital appreciation by investing in equity and equity related securities of large cap, mid cap and small cap companies. There is no assurance that the investment objective of the Scheme will be realized.


INVESTMENT STRATEGY

The investment objective of the Scheme is to generate long term capital appreciation by investing in equity and equity related securities of large cap, mid cap and small cap companies.

The Scheme will maintain a minimum exposure of 25% of its total assets in each market cap category viz. Large cap, Mid cap & Small cap.

The Scheme may also invest upto 25% of its total assets in debt and money market securities. The Scheme will remain diversified across key sectors and economic variables. The Scheme may also invest in the hybrid securities viz. units of REITs and InvITs for diversification and subject to necessary stipulations by SEBI from time to time.


Benchmark

The performance of the Scheme is measured against Nifty 500 Multicap 50:25:25 Total Returns Index


The asset allocation under the Scheme

Under normal circumstances, the asset allocation (% of Net Assets) of the Scheme’s portfolio will be as follows:

Type of Instruments

Minimum Allocation (% of Total Assets)

Maximum Allocation (% of Total Assets)

Risk Profile

Equity and Equity related instruments of Large, Mid and Small cap companies of which:

75

100

Medium to High

Large Cap companies

25

50

Medium to High

Mid Cap companies

25

50

Medium to High

Small Cap companies

25

50

Medium to High

Units of REITs and INVITs

0

10

Medium to High

Debt securities, money market instruments and Fixed Income Derivatives

0

25

Low to Medium

Units of Mutual Fund

0

20

Low to High

NFO Details

Scheme Opens

23-Nov-21

Scheme Closes

07-Dec-21

Scheme reopens for continuous purchase/sale

Within 5 business days

Minimum Lumpsum

Rs 5,000

Minimum SIP

Rs 500 for 6 months

NAV of the fund

Rs 10 during NFO period

Entry Load

Nil

Exit Load

1% if reedeemed within 1 year

Benchmark

Nifty 500 MULTICAP 50:25:25 ( TRI )

Fund Manager

Mr. Gopal Agrawal

Performance of existing Multicap Funds

Here is the performance of some existing Multi cap funds. This would give an idea to investors on how these funds have performed in medium to long term. Returns indicated here are annualized returns.

​Scheme Name

​1 Yr Ret ( % )

3 Yr Ret ( % )