HDFC Flexi Cap Fund, the oldest scheme from HDFC Mutual Fund, has been a consistent performer across various time periods—both short term and long term. The top-rated fund has delivered a return of 15.69% over the past year, significantly outperforming its benchmark, the NIFTY 500 TRI (8.54%), as well as the flexi-cap category average of 8.41%.
The regular plan of this top-performing flexi-cap fund, which completed 30 years on January 1 this year, has been rated 5 stars by both Value Research and CRISIL. Since its launch in January 1995, the scheme has delivered an impressive annualised return of 18.91%. Currently, there are only two 5-star rated flexi-cap funds—the other being the Parag Parikh Flexi Cap Fund, which is just 12 years old.
Being a flexi cap fund, HDFC Flexi Cap Fund has the liberty to invest across large-cap, mid-cap, and small-cap stocks, depending on market conditions. This dynamic allocation helps the fund capture growth opportunities across the market spectrum. The flexibility also allows the fund manager to rebalance the portfolio during volatile times.
Let’s review the performance of HDFC Flexi Cap Fund – Regular Plan over different periods and calculate the returns an investor would have earned by investing in the scheme through both SIP and lump sum modes since its launch 30 years ago.
HDFC Flexi Cap Fund’s performance:
3-year returns: 24.95% CAGR
5-year returns: 31.22% CAGR
10-year returns: 15.29% CAGR
15-Year returns: 14.94% CAGR
20-year returns: 17.95% CAGR
Returns since launch (over 30 years): 18.91%
At this rate of return, a lump-sum investment of Rs 1 lakh into the HDFC Flexi Cap Fund – Regular Plan would be worth now nearly Rs 1.95 crore.
SIP returns: 20.26% annualised
If someone had started an SIP of Rs 10,000 monthly 30 years ago, the fund would have accumulated a sum of Rs 2.03 crore for the individual.
Also read: These thematic mutual funds delivered over 25% in 5 years
HDFC Flexi Cap Fund portfolio and other details
HDFC Flexi Cap Fund – Regular Plan has an expense ratio of 1.39% and commands an assets under management (AUM) of Rs 74,105 crore.
If we look at the fund’s top 5 sector-wise holdings, financials account for the largest share at 39.52%, followed by consumer discretionary at 16%, healthcare at 9.18%, technology at 8.77%, and materials at 4.78%.
Among its top holdings company-wise, the fund has allocated 9.44% to ICICI Bank, 9.35% to HDFC Bank, 8.48% to Axis Bank, 4.92% to Kotak Mahindra Bank, and 4.65% to SBI Life Insurance.
HDFC Flexi Cap Fund has a standard deviation of 12.40%, a Sharpe ratio of 1.37, beta of 0.83, and alpha of 7.35%. These are all key indicators of the fund’s risk-return profile.
In simple terms, the standard deviation shows the fund’s volatility. At 12.40%, it indicates moderate fluctuations in returns. The Sharpe ratio, which measures risk-adjusted returns, is relatively high at 1.37. This Sharpe ratio suggests the fund delivered good returns for the level of risk taken. A beta of 0.83 means the fund is less volatile than the broader market. If the market moves 1%, the fund typically moves only 0.83%. Lastly, an alpha of 7.35% indicates the fund has outperformed its benchmark by that margin.
Also read: Cheapest flexi-cap funds with best 10-year returns: Top-rated Parag Parikh fund leads
Who should invest?
HDFC Flexi Cap Fund is best suited for long-term investors who are looking to build wealth steadily over time while maintaining diversification across market capitalisations. Since the fund dynamically invests in large-cap, mid-cap, and small-cap stocks, it is ideal for those who want to benefit from the growth potential of different segments of the market without having to manage allocations themselves.
However, given the exposure to mid and small caps, it may witness higher volatility in the short term. Hence, investors with a time horizon of at least 5–7 years, and the ability to withstand interim market fluctuations, are more likely to benefit from this scheme.
Investors must note that past performance does not guarantee similar returns in the future. Always consult a SEBI-registered financial advisor before making any investment decision.
Disclaimer: The above content is for informational purposes only. Mutual Fund investments are subject to market risks. Please consult your financial advisor before investing.