Mid-caps are showing a recovery after a year of underperformance. This calls for the time to make an investment in these schemes. But, the most common question that arises is, in which scheme one should make an investment to mark good profits? Well, today MySIPonline presents you one such great scheme that has shown good performance even during volatile markets and the name of the scheme is HDFC Mid-Cap Opportunities Fund.
What Is So Special About this Scheme?
Launched on Jun 25, 2007, as an open-ended scheme, it follows the objective of generating long-term capital appreciation by investing predominantly in mid-cap stocks which show great possibilities for future growth. After the re-categorization, it is stated that the mid-cap schemes can only invest in stocks that rank between 101-250 in term of market capitalization. Currently, it has 86.10% of total equity investment in mid-caps, 10.71% in small-caps, and 3.19% in large-cap equities. The scheme also has a small portion of 4.23% of the total investment in debt instruments.
As for sector allocation, HDFC Mid-Cap Opportunities Fund has a major investment of 24.03% in the finance sector. The other sectors which hold a good amount of investment are engineering (12.35%), chemicals (8.76%), automobile (8.42%), cons durable (7.54%), and technology (7.22%). The top 10 holdings of the fund are from the above sectors include prime companies like Sundaram Fasteners, Cholamandalam Invest. & Finance, Balkrishna Industries, Hexaware Technologies, Voltas, RBL Bank, City Union Bank, Aarti Industries, Exide Industries, and Edelweiss Financial Services. For viewing a more detailed portfolio of this scheme, you can visit MySIPonline.
Basic Scheme Parameters
HDFC Mid-Cap Opportunities Fund NAV as on Jul 27, 2018, is Rs 57.001 and the value of the assets as recorded on Jun 30, 2018, is Rs 19,990 crores. The huge asset size shows the trust that lakhs of retail investors have in this scheme. The expenses that you have to pay annually is 2.26% of your principal amount and an exit load of 1% will be charged if you redeem your investments before 365 days. The minimum investment required to enroll for hdfc mid-cap opportunities fund growth scheme is Rs 5000 and you can start a SIP at MySIPonline for as low as Rs 500.
Past Performance
HDFC Mid-Cap Opportunities Fund has provided returns of 6.17%, 14.57%, 27.42%, and 20.59% in 1, 3, 5, and 10 years, respectively and has outperformed its benchmark at all occasions, which has shown returns of 3.35%, 13.24%, 22.82%, and 14.41% in the same time period. The scheme has also outperformed its category and is ranked 1st with respect to 10-year returns. It gave its worst performance during the bearish market of 2008, which it recovered from soon and gave an all-time best performance between March 2009- Mar 2010.
Why Choose This Scheme?
HDFC Mid-Cap Opportunites Fund currently has one of the best portfolios in the mutual fund industry. As discussed above, the scheme has a major investment in finance sector which has started showing recovery and will soon reach new heights, and when that happens the fund will start giving some of the best returns.
This covers our topic for today. HDFC Mid-Cap Opportunities Fund is a great scheme and has never disappointed any of its investors. However, you should consult your financial advisor before making the final decision to know that if this scheme suits your risk appetite. If you have any question about this or any other mutual fund scheme, then you can contact our experts at MySIPonline.
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