HDFC Mutual Fund announces NFO HDFC Multi Cap Fund

The objective of the fund is to generate long term capital appreciation through controlled exposure in large, mid and small caps.

The subscription period in Pexels HDFC Multi Cap NFO is from 23 November to 7 December.

HDFC Multi Cap Fund NFO Review: HDFC Asset Management Company has announced the launch of New Fund Offer (NFO) HDFC Multi-Cap Fund. The NFO of HDFC Multi-Cap Fund will open from November 23 and close on December 7, 2021. It is an open-ended equity scheme, which will invest in large cap, mid cap and small cap segments.

Where will the fund invest

The fund will mandatorily allocate a minimum of 25% of its total assets in large, mid and small cap companies, while the remaining 25% of its total assets will be allocated based on the market outlook of the fund manager.

Basic Info of HDFC Multi-Cap Fund

NFO period: November 23 – December 7, 2021
Type: open-ended equity scheme
Fund Objective: The fund aims to generate long term capital appreciation through controlled exposure in large, mid and small caps.
Fund Manager: Gopal Agarwal
Riskometer: very high
Benchmark: Nifty500 Multicap 50:25:25 TRI
Minimum Investment: 5,000 rupees
Who is it right for? HDFC Multi Cap Fund is suitable for investors with medium to long term investment horizon, who are looking for disciplined investments in large, mid and small caps.

track record

Historically, different market cap segments have outperformed each other at different times. Out of the last 16 financial years (FY06 to FY21), Large Cap has been the best performing market cap segment in 6 years, whereas, Mid Cap in 3 years and Small Cap has performed well in 7 years.

Fund’s investment strategy

In terms of investment strategy, HDFC Multi Cap Fund will follow a mix of top down and bottom up approach for stock selection. As per the current investment strategy, the scheme will invest 60% to 75% of the total assets in large and mid caps. In addition, it will invest 25%-40% of the total assets in small caps. The scheme will invest without stylistic bias and aims to seize opportunities in growth, value and turnaround companies.

Gopal Agarwal, Fund Manager, HDFC Multi Cap Fund said, “Our Multi Cap Fund is a one-stop solution for investors looking to invest across different market caps in a disciplined manner to achieve superior risk-adjusted returns. Long-term fundamentals, effective diversification and stock selection are critical in a constantly changing environment.”

what should be done

Mutual fund portfolio should be built with market-cap based diversification of different segments. For this, the investor needs to make an allocation between large, mid and small caps. Multicap can be a good option for this. Multicap approach helps investors to focus on diversification rather than predicting the outperformance/underperformance of different market cap segments. Before making an investment decision, your risk appetite, goals and many other factors should be taken into consideration. It is better that you take help from a financial advisor.

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