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.
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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.