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 ( % )

5 Yr Ret ( % )

Action

Quant Active Fund

76.61

34.03

26.70

Nippon India Multi Cap Fund

62.96

17.04

16.31

Mahindra Manulife Multi Cap Badhat Yojana

61.88

28.06

--

Baroda Multi Cap Fund

55.95

24.64

17.91

Principal Multi Cap Growth Fund

53.38

20.77

18.89

Invesco India Multicap Fund

50.58

21.47

17.41

ICICI Prudential Multicap Fund

49.32

17.65

15.61

BNP Paribas Multi Cap Fund

49.14

21.45

17.18

Sundaram Equity Fund

45.19

--

--

ITI Multi Cap Fund

32.71

--

--

Suitability


This Product is suitable for investors who are seeking*

  • Long term wealth creation

  • An open ended equity scheme investing across large cap, mid cap, small cap stocks

  • Investors whose investment time horizon is five years or more, this scheme may be suitable for them.

 



 

If you have any query or wants any assistance please Call 9837346090 or fill your details by clicking below we will call you

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*Investors should consult their financial advisors if in doubt about whether the product is suitable for them

Note: The above information has been sourced from the Scheme Information Document provided by HDFC Asset Management. Read the entire document before investing, Disclaimer: Jaiprakash (ARN/Distributor - 70524; brand name Vasundhra Investment ) is the distributor of the mutual fund. Please consult your investment advisor before investing

Mutual Fund investments are subject to market risks, read all scheme related documents carefully.


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